Question

Please complete all 6 parts and highlight answer key. thank you

Question Help McCarthy Men's Clothing's revenues and cost data for 2017 are as foliows 311 Click the icon to view the data.) Mr. McCarthy, the owner of the store, is unhappy with the operating results. An analysis of other operating costs reveals that it includes $50.000 variable costs, which vary with sales volume, and $15.000 (d) costs Read the requirements Requirement 1. Compute the contribution margin of McCarthy Men's Clothing Determine the formula to calculate the contribution margin, then enter the amounts in the formula to compute the contribution margin of McCarthy Men's Clothing Contribution margin Choose from any drop-down list and then click Check Answer Check Answer Clear All 6 parts remaining hp 8 5 3 2 7 P Y R E W Q اهااالالالا H K к G D F S A

Answer 1

Working notes: $500,000 $280,000 $220,000 Contribution Format Income Statement Sales Variable cost Cost of goods sold $225,000 Sales commission $55,000 Total variable cost Contribution margin Fixed cost Salaries $190,000 Depreciation on equipment and fixtures $16,000 Store rent $36,000 Other operating expenses $65,000 Total Fixed expense Net profit (Loss) $307,000 -$87,000 1 Contribution Margin $220,000 44.00% 2 Contribution Margin percentage (Contribution margin/Sales)*100 3 Increase in Sales Contribution Margin percentage Increase in Contribution Less: Increase in advertising Increase in Operating Income $125,000 25% of $500,000 44.00% $55,000 $125,000*44% $10,000 $45,000 Answer 4 Other actions to improve Operating Income Increase selling price Increase units sold Reduce variable cost per unit Reduce fixed cost