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Need help with D. Wildhorse sells a learning system that helps preschool and elementary students learn basic math facts and concepts. The company's income statement
Need help with D.
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 Total $700.000 Sales revenue $50 Variable expenses 315,000 22.50 Contribution margin 385,000 $27.50 Fixed expenses 264,000 Operating income $ 121,000 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 %6 Your answer is correct. Compute breakeven sales. (Use the rounded contribution margin ratio calculated in the previous part to compute breakeven sales Breakeven sales $ 480,000 (62) Your answer is correct. What is Wildhorse's margin of safety? Margin of safety $ 220,000 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.) Net Operating income will increase by $ $ 55,000 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 es 52.75 and final answer to O decimal places, eg. 5,275) $ Operating income
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