Wharton Men's Clothing's revenues and cost data for 2012 are as follows: (Click the icon to view the data.) Mr. Wharton, the owner of the store, is unhappy with the operating results. An analysis of other operating costs reveals that it includes $25,000 variable costs, which vary with sales volume, and $10,000 fixed costs. Read the requirements. Requirement 1. Compute the contribution margin of Wharton Men's Clothing. Determine the formula to calculate the contribution margin, then enter the amounts in the formula to compute the contribution margin of Wharton Men's Clothing. - = Contribution margin Revenues $ 500,000 200,000 Cost of goods sold 300,000 Gross margin Operating costs: Salaries fixed $ Sales commissions (11% of sales) Depreciation on equipment and fixtures Store rent ($5,000 per month) Other operating costs 190,000 55,000 14,000 60,000 35,000 354,000 $ (54,000) Operating income (loss) 1. Compute the contribution margin of Wharton Men's Clothing. 2. Compute the contribution margin percentage. 3. Mr. Wharton estimates that he can increase revenues by 25% by incurring additional advertising costs of $15,000. Calculate the impact of the additional advertising costs on operating income. 4. What other actions can Mr. Wharton take to improve operating income