Determine the formula to calculate the contribution? margin, then enter the amounts in the formula to compute the contribution margin of GodfroyGodfroy ?Men's Clothing.

Godfroy Men's Clothing's revenues and cost data for 2017 are as follows: FEA (Click the icon to view the data.) Mr. Godfroy, 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 $5,000 (fixed) costs. Read the requirements. Requirement 1. Compute the contribution margin of Godfroy Men's Clothing. Determine the formula to calculate the contribution margin, then enter the amounts in the formula to compute the contribution margin of Godfroy Men's Clothing. Lt] - Data table Revenues Cost of goods sold (all variable costs) Gross margin Operating costs: Salaries fixed Sales commissions (8% of sales) Depreciation on equipment and fixtures Store rent ($5,000 per month) Other operating costs Operating income (loss) = Contribution margin $ 150,000 40,000 16,000 60,000 55,000 500,000 200,000 300,000 321,000 (21,000) Requirements 1. Compute the contribution margin of Godfroy Men's Clothing. 2. Compute the contribution margin percentage. 3. Mr. Godfroy estimates that he can increase units sold, and hence revenues by 25% by incurring additional advertising costs of $10,000. Calculate the impact of the additional advertising costs on operating income. 4. What other actions can Mr. Godfroy take to improve operating income? =) ED