How did total variable cost come out to $310,500?

O'Reilly Men's Clothing's revenues and cost data for 2017 are as follows: (Click the icon to view the data.) Mr. O'Reilly, the owner of the store, is unhappy with the operating results. An analysis of other operating costs reveals that it includes $45,000 variable costs, which vary with sales volume, and $10,000 (fixed) costs. Read the requirements. ... Requirement 1. Compute the contribution margin of O'Reilly Men's Clothing. Determine the formula to calculate the contribution margin, then enter the amounts in the formula to compute the contribution margin of O'Reilly Men's Clothing. Revenues Total variable costs Contribution margin 139,500 $ 450,000 310.500 Requirement 2. Compute the contribution margin percentage. Determine the formula to calculate the contribution margin percentage, then enter the amounts in the formula to compute the contribution margin percentage. (Enter the result as a whole percentage, XX%.) Contribution margin percentage Data Table Revenues $ 450,000 225,000 - X Requirements 225,000 Cost of goods sold (all variable costs) Gross margin Operating costs Salaries fixed $ 150,000 40.500 Sales commissions (9% of sales) Depreciation on equipment and fixtures Store rent ($4,000 per month) 1. Compute the contribution margin of O'Reilly Men's Clothing. 2. Compute the contribution margin percentage. 3. Mr. O'Reilly estimates that he can increase units sold, and hence 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. O'Reilly take to improve operating income? 14,000 48,000 55,000 307,500 Other operating costs $ (82,500) Operating income (loss) Print Done Print Done