Carla Vista sells a learning system that helps preschool and elementary students learn basic math facts and concepts. The company's income statement from last month is as follows: Total Per Unit Sales revenue $650,000 $50 Variable expenses 227,500 17.50 Contribution margin 422,500 $32.50 Fixed expenses 266,500 Operating income $ 156,000 (a) What is Carla Vista's contribution margin ratio? Its variable cost ratio? (Round ratios to 2 percentage places, eg. 0.38 = 38%.) Contribution margin ratio % Variable cost ratio % (61) Compute breakeven sales. (Use the rounded contribution margin ratio calculated in the previous part to compute breakeven sales.) $ Breakeven sales e Textbook and Media Save for Later Attempts: 0 of 3 used Submit Answer (62) What is Carla Vista's margin of safety? $ Margin of safety (c) If Carla Vista's sales were to increase by $200,000 with no change in fixed expenses, by how much would operating income increase? (Use the rounded contribution margin ratio calculated in the previous part to compute breakeven sales.) $ Net Operating income will increase by e Textbook and Media Save for Later Attempts: 0 of 3 used Submit Answer (d). Carla Vista's managers have determined that variable costs per unit will increase by 18% beginning next month. To offset this increase in costs, they are considering a 12% increase in the sales price. Market research indicates that the price increase will result in a 2% decrease in the number of learning systems Carla Vista sells. What will be Carla Vista's expected operating income if the price increase is implemented? (Round per unit calculations to 2 decimal places eg. 52.75 and final answer to 0 decimal places, e.g. 5,275.) $ Operating income