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Requirement 1. What is Scott's current operating income? The operating income is Requirement 2. What is Scott's contribution margin ratio? Begin by identifying the formula to compute the contribution margin ratio. = Contribution margin ratio (Enter the ratio as a whole percent) The contribution margin ratio is %. Requirement 3. What is the company's breakeven point in sales dollars? (Hint: The contribution margin ratio calculated in Requirement 2 is already weighted by the company's actual sales mix.) Begin by identifying the formula to compute the breakeven point in sales dollars. ( [ (Round your answer up to the nearest whole dollar.) The breakeven point in sales dollars is If Scott embarks on this advertising campaign, sales revenue and variable costs will y %, which will cause the contribution margin to by \%. However, fixed costs will by due to the advertising. What effect would this advertising campaign have on Scott's annual operating income? The effect would be operating income of 1: Requirements 1. What is Scott's current operating income? 2. What is Scott's contribution margin ratio? 3. What is the company's breakeven point in sales dollars? (Hint: The contribution margin ratio calculated in Requirement 2 is already weighted by the company's actual sales mix.) (1) O Contribution margin O Salice margin Sales revenue Operating income Units sold (2) 0 O Sale price (3) O Sale price Sales revenue (5) (4) O Total variable cost Units sold Variable cost Fixed expenses Variable expences Fixed expenses Units sold Contribution margin Fixed costs Operating income (8) O Operating income (9) O (10) O (11) O (12) - Sales revenue (6) O Total variable cost Variable cost Fixed costs O fall Variable expenses decrease fall rise a decrease in an increase in Contribution margin per unit Operating income Fixed expenses Variable expenses Units sold rise O increase Contribution margin per unit Variable an increase in