I need help with A2 and B

View Policies Show Attempt History Current Attempt in Progress Pharoah Orthotics Company distributes a specialized ankle support that sells for $40. The company's variable costs are $30 per unit; fixed costs total $360,000 each year. (a1) Your answer is correct. Calculate contribution margin ratio. (Round ratio to 2 percentage places, e.g. 0.38 = 38%.) Contribution margin ratio 25 % e Textbook and Media Attempts: 1 of 3 used (a2) Your answer is incorrect. If sales increase by $57,000 per year, by how much should operating income increase? (Use the rounded contribution margin ratio calculated in the previous part.) Change in operating income $ e Textbook and Media Save for Later Attempts: 2 of 3 used Submit Answer - ACC-650 TOPIC 2 Assignment Question 12 of 13 > 2.22/ 4 Your answer is partially correct. Last year, Pharoah sold 38,000 ankle supports. The company's marketing manager is convinced that a 10% reduction in the sales price, combined with a $48,000 increase in advertising, will result in a 36% increase in sales volume over last year. Compute the projected income. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Projected income $ Should Pharoah implement the price reduction? Pharoah should not |implement the price reduction because the estimated operating income is less v than the cur e Textbook and Media Save for Later Attempts: 2 of 3 used Submit