EC Designs is a small designer/manufacturing company based in Long Beach. The owner, Ellory Clawson, produces chic bohemian-style dresses. Below is a sampling of her most recent monthly financial information based on selling 360 units:Sales $21,600Cost of Goods Sold $5,400Variable Selling Expenses $1,300Fixed Operating Expenses $2,400Operating Income $11,000Calculate the contribution margin and the contribution margin ratio. Show your work.Over the past 6 months, the business has consistently increased sales by $1,000 every month. What will be the increase in income from operations next month? Use the contribution margin ratio in your answer.Calculate the break-even point in units. Show your work.Ms. Clawson is thinking about moving to a larger store. It would increase her fixed operating expenses by $800 to $3,200 and is expected to increase sales by 5% in revenue over current projections. Do you think this is a good idea? Explain your rationale.Your discussion answers will be graded based on the rubric. See the syllabus if you need to refresh your memory on what is required.
