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

$650,000

$50Variable expenses

260,000

20.00Contribution margin

390,000

$30.00Fixed expenses

252,000

Operating income

$138,000

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

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

What is Crane's margin of safety?

If Crane's sales were to increase by $100,000with 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.)

Crane'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 a2% 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 final answer to 0 decimal places, e.g. 5,275.)