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Crane 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
Crane 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 $765,000 $51 Variable expenses 306,000 20.40 Contribution margin 459,000 $30.60 Fixed expenses 312,000 Operating income 55 147,000 (d) 5 Your answer is incorrect. Crane's managers have determined that variable costs per unit will increase by 20% beginning next month. To offset this increase in costs, they are considering a 10% increase in the sales price. Market research indicates that the price increase will result in a 2% decrease in the number of learning systems Crane sells. What will be Crane's expected operating income if the price increase is implemented? ( Round per unit calculations to 2 decimal places e.g. 52. 75 and nal answer to 0 decimal places, e3. 5,2 75.) Operating income
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