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I don't know how to answer letter d. Question 1 of 5 0.8/1 Wildhorse sells a learning system that helps preschool and elementary students learn
I don't know how to answer letter d.
Question 1 of 5 0.8/1 Wildhorse 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: Per Unit Sales revenue Variable expenses Contribution margin Fixed expenses Operating income Total $700,000 315.000 385.000 264,000 $ 121,000 $50 22.50 $27.50 (a) Your answer is correct. What is Wildhorse's contribution margin ratio? Its variable cost ratio? (Round ratios to 2 percentage places, e.g. 0.38 = 38%.) (a) Your answer is correct. What is Wildhorse's contribution margin ratio? Its variable cost ratio? (Round ratios to 2 percentage places, eg. 0.38 - 38%.) Contribution margin ratio 55 % Variable cost ratio 45 % e Textbook and Media Attempts: 1 of 3 used Your answer is correct. Compute breakeven sales. (Use the rounded contribution margin ratio calculated in the previous part to compute breakeven sales.) Breakeven sales $ 480000 e Textbook and Media Attempts: 1 of 3 used (62) Your answer is correct. What is Wildhorse's margin of safety? $ Margin of safety 220000 e Textbook and Media Attempts: 1 of 3 used (c) Your answer is correct. If Wildhorse's sales were to increase by $100,000 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.) $ 55000 Net Operating income will increase by e Textbook and Media Attempts: 1 of 3 used (d) Wildhorse's managers have determined that variable costs per unit will increase by 16% 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 Wildhorse sells. What will be Wildhorse'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 ploces, e.g. 5,275.) $ Operating income e Textbook and Media Save for Later Attempts: 0 of 3 used SubmitStep by Step Solution
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