**Sales Increase and Operating Income Calculation***Problem Statement:*If sales increase by $62,000 per year, by how much should operating income increase? *(Use the rounded contribution margin ratio calculated in the previous part.)*---To calculate the change in operating income, please provide the rounded contribution margin ratio from the previous part of the problem. Enter the result in the field below:**Change in operating income:** $ [Input Field]---**Additional Resources:**For further assistance, refer to the eTextbook and Media section which offers more detailed explanations and examples. **Company Overview:**Sunland Orthotics Company distributes a specialized ankle support that retails for $30 per unit. The company incurs variable costs of $20 for each unit produced. In addition to these variable costs, Sunland Orthotics faces fixed costs totaling $380,000 annually.**Task: Calculate Contribution Margin Ratio****Instructions:**- Calculate the contribution margin ratio.- Ensure to round the ratio to two percentage places (e.g., 0.38 should be rounded to 38%).**Input Required:**- Contribution Margin Ratio: _______ %*Note: The previous input was incorrect, prompting the calculation task again.*

Sunland Orthotics Company distributes a specialized ankle support that sells for $30. The company's variable costs are $20 per unit; fixed costs total $380,000 each year. (a1) Your answer is incorrect. Calculate contribution margin ratio. (Round ratio to 2 percentage places, e.g. 0.38 = 38%) Contribution margin ratio %

Sunland Orthotics Company distributes a specialized ankle support that sells for $30. The company's variable costs are $20 per unit; fixed costs total $380,000 each year. (a1) Your answer is incorrect. Calculate contribution margin ratio. (Round ratio to 2 percentage places, e.g. 0.38 = 38%) Contribution margin ratio %

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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