CraneTot 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 $50 17.50 Sales revenue Variable expenses Contribution margin Fixed expenses Operating income $735,000 257,250 477,750 292,500 $ 185,250 $32.50 What is Crane Tot's contribution margin ratio? Its variable cost ratio? (Round ratios to 2 percentage places, e.g. 0.38 = 38%.) Contribution margin ratio Variable cost ratio LINK TO TEXT LINK TO VIDEO VIDEO: SIMILAR EXERCISE Compute breakeven sales. (Use the rounded contribution margin ratio calculated in the previous part to compute breakeven sales.) Breakeven sales $ What is Crane Tot's margin of safety? Margin of safety $ LINK TO TEXT LINK TO VIDEO VIDEO: SIMILAR EXERCISE If Crane Tot'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 $ LINK TO TEXT LINK TO VIDEO VIDEO: SIMILAR EXERCISE Crane Tot'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 12% increase in the sales price. Market research indicates that the price increase will result in a 3% decrease in the number of learning systems Crane Tot sells. What will be Crane Tot'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 O decimal places, e.g. 5,275.) Operating income $ Click if you would like to Show Work for this question: Open Show Work