Refer to Exhibit  2.11.Data From Exhibit 2.11:Requireda. What is Universal Sports Exchange’s

Refer to Exhibit  2.11.

Data From Exhibit 2.11:

Required

a. What is Universal Sports Exchange’s operating profit equation?

b. If Universal Sports Exchange sells 55,000 jerseys, what total expense will be reported on the  income statement?

c. The Daily News Journal has approached Martin Keck, Universal’s vice president for sales, with a  $20,000 annual ad campaign. If Martin accepts the ad campaign, what will change in Universal’s  operating profit equation?

d. Assume that Martin Keck accepts the Daily News Journal’s ad campaign and as a result Universal  sells 65,000 jerseys. Prepare the contribution format income statement for the year.

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