Welch Men's Clothing's revenues and cost data for $2021$ are as follows:

EEB $($Click the icon to view the data.$)$

Mr$.$ Welch, the owner of the store, is unhappy with the operating results. An analysis of other operating costs reveals that it includes $$30,000$ variable costs, which vary with sales volume, and $$15,000($fixed$)$ costs.

Required

Requirement $1.$ Compute the contribution margin of Welch Men's Clothing.

Determine the formula to calculate the contribution margin, and then enter the amounts in the formula to compute the contribution margin of Welch Men's Clothing.

Contribution margin

Requirement $2.$ Compute the contribution margin percentage.

Determine the formula to calculate the contribution margin percentage, then enter the amounts in the formula to compute the contribution margin percentage. $($Enter the result as a whole percentage, XX$\%.)$

Contribution margin percentage

$\%$

Requirement $3.$ Mr$.$ Welch estimates that he can increase units sold, and hence revenues by $25\%$ by incurring additional advertising costs of $$8,000.$ Calculate the impact of the additional advertising costs on operating income.

Determine the formula to solve for the amount then complete the formula.

Change in operating income

Requirement $4.$ What other actions can Mr$.$ Welch take to improve operating income?

To improve operating income, Mr$.$ Welch must$$find$$ways$$to