Using the following income statements, prepare a contribution margin income statement for March. (Round per unit answerst decimal places, e.g. 52.75.) Sales revenue Cost of goods sold Gross profit Rent expense Wages expense Shipping expense Utilities expense Advertising expense Insurance expense Operating income February $25,000 10,000 15,000 1,500 3,500 1,100 750 1,000 585 $6,565 March $37.500 15,000 22,500 1,500 5,000 1,650 750 1,400 585 $11,615 Total Per unit Sales $ 37,500 $ 12.50 Variable expenses Cost of goods sold 15,000 5 Shipping 1,650 0.55 Advertising 1,200 0.40 Wages 4,500 1.50 Total variable expenses 22,350 7.45 Contribution margin V 15,150 $ 5.05 Fbeed expenses Insurance 585 Rent 1.500 Utilities 750 Wages 500 Advertising 200 Total foed expenses 3535 $ Operating income 11.615 Blake plans to sell 1,500 stuffed mascots next month. How much operating income can Blake expect to earn next month if he realizes his planned sales? (Round per unit to 2 decimal places and final answer to 0 decimal places, e.g. 5,275.) Operating income 4,040 e Textbook and Media Attempts: 1 of 3 used (d) Your answer is correct. Blake wasn't happy with the projected income statement you showed him for a sales level of 1,500 stuffed mascots. He wants to know how many stuffed mascots he will need to sell to earn $5,555 in operating income. (Round per unit to 2 decimal places and final answer to 0 decimal places, e.g. 5,275.) 1.800 mascots As a safety net, he also wants to know how many stuffed mascots he will need to sell to break even. (Round per unit to 2 decimal places and final answer to decimal places, eg. 5,275.) 700 mascots Blake is evaluating two options to increase the number of mascots sold next month. First, he believes he can increase sales by advertising in the university newspaper. Blake can purchase a package of 12 ads over the next month for a total of $1,500. He believes the ads will increase the number of stuffed mascots sold from 1,500 to 2,200. A second option would be to reduce the selling price. Blake believes a 15% decrease in the price will result in 2,400 mascots sold. Calculate the operating income for each options? (Round per unit to 2 decimal places and final answers to decimal places, eg. 5,275.) Operating Income Option 1 $ 6,075 Option 2 $ 4,097 Which plan should Blake implement? Option 1 At what level of sales would he be indifferent between the two plans? (Round per unit to 2 decimal places and final answer too decimal places, e.g. 5,275.) mascots