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Godfroy Mens Clothings revenues and cost data for 2017 are as follows: B (Click the icon to view the data.) Mr. Godfroy, thRequirement 4. What other actions can Mr. Godfroy take to improve operating income? To improve operating income, Mr. GodfroyRevenues $ 500,000 225,000 Cost of goods sold (all variable costs) Gross margin Operating costs: 275,000 Salaries fixed $ Sal

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Answer #1
1) Sales - Variable Costs = Contribution Margin
$                          5,00,000 - $                                     2,50,000 = $                                         2,50,000
2) Contribution Margin / Sales = Contribution Margin Percentage
$                          2,50,000 / $                                     5,00,000 = 50%
3) Contribution Margin - Fixed cost(advertising cost) = Change In Operating Income
$                        62,500.00 - $                                           8,000 = $                                            54,500
4) To improve income, Mr G must find ways to increase sales revenue
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