ccounting 8th Ed Homework: Chapter 3 Score: 0 of 1 pt 8 of 10 (0 complete) Exercise 3-24 (similar to) Neylon Men's Clothing's revenues and cost data for 2017 are as follows: E (Click the icon to view the data.) Mr. Neylon, the owner of the store, is unhappy with the operating results. An analysis of other operating costs reveals that it includes $35,000 v costs. Read the requirements. Requirement 1. Compute the contribution margin of Neylon Men's Clothing Determine the formula to calculate the contribution margin, then enter the amounts in the formula to compute the contribution margin of Neylon = Contribution margin Ravinder Dande & I pter 3 8 of 10 (0 complete) HW SC ) Q cost data for 2017 are as follows: nhappy with the operating results. An analysis of other operating costs reveals that it includes $35,000 variable costs, which vary with sales volume, ion margin of Neylon Men's Clothing, contribution margin, then enter the amounts in the formula to compute the contribution margin of Men's Cloth Contribution margin 2973&questionId=1&flushed=false&cid=6261903&centerwin=yes 8 of 10 (0 complete) Data Table x Revenues $ 500,000 225,000 Cost of goods sold (all variable costs) Gross margin Operating costs: 275,000 Salaries fixed $ 200,000 Sales commissions (13% of sales) 65,000 Depreciation on equipment and fixtures 11,000 Store rent ($5,000 per month) 60,000 40,000 376,000 Other operating costs $ (101,000) Operating income (loss) Print Done N O P W ith the operating results. An analysis of other onerating costs reveals that it includes $25.000 variable casts, which vary wi i Requirements - X m of Neyla en margin othing 1. Compute the contribution margin of Neylon Men's Clothing. 2. Compute the contribution margin percentage. 3. Mr. Neylon estimates that he can increase units sold, and hence revenues by 20% by incurring additional advertising costs of $14,000. Calculate the impact of the additional advertising costs on operating income. 4. What other actions can Mr. Neylon take to improve operating income? Print Done Check