Carla Vistasells 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 $810,000 $54

Variable expenses 364,500 24.30

Contribution margin 445,500 $29.70

Fixed expenses 261,250

Operating income 184,250

A. What isCarla Vista's contribution margin ratio? Its variable cost ratio?(Round ratios to 2 percentage places, e.g. 0.38 = 38%.)

1. Contribution margin ratio %
2. Variable cost ratio %

B1. Compute breakeven sales.(Use the rounded contribution margin ratio calculated in the previous part to compute breakeven sales.)

B2. What isCarla Vista's margin of safety?

C. IfCarla Vista's sales were to increase by $200,000with 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.)

D. Carla Vista's managers have determined that variable costs per unit will increase by20% beginning next month. To offset this increase in costs, they are considering a10% increase in the sales price. Market research indicates that the price increase will result in a3% decrease in the number of learning systemsCarla Vistasells. What will beCarla Vista's expected operating income if the price increase is implemented?(Round per unit calculations to 2 decimal places e.g. 52.75 and final answer to 0 decimal places, e.g. 5,275.)