Welch Men's Clothing's revenues and cost data for 2020 are as follows: E(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. Read the requirements. Requirement 1. Compute the contribution margin of Welch Men's Clothing. Determine the formula to calculate the contribution margin, 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 i Data Table - Revenues $ 600,000 300,000 Cost of goods sold (all variable costs) Gross margin Operating costs: 300,000 Salaries fixed $ 140,000 72,000 Sales commissions (12% of sales) Depreciation on equipment and fixtures Store rent ($3,500 per month) 10,000 42,000 45,000 Other operating costs 309,000 (9,000) $ Operating income (loss) Print Done 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 Choose from any list or enter any number in the input fie decrease variable costs, decrease fixed costs, or increase selling prices ? Save for Later decrease fixed costs, decrease selling prices, or variable costs must remain the same