Question 11 of 13 -/4 View Policies Current Attempt in Progress Ivanhoe 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 $676,000 $52 Sales revenue Variable expenses 236,600 18.20 439,400 $33.80 Contribution margin Fixed expenses 286,000 Operating income $ 153,400 (a) What is Ivanhoe's contribution margin ratio? Its variable cost ratio? (Round ratios to 2 percentage places, eg. 0.38 = 38%.) Contribution margin ratio Variable cost ratio eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer (61) Compute breakeven sales. (Use the rounded contribution margin ratio calculated in the previous part to compute breakeven sales.) $ $ Breakeven sales e Textbook and Media (62) What is Ivanhoe's margin of safety? $ Margin of safety eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer (c) If Ivanhoe'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 eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer (d) Ivanhoe'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 2% decrease in the number of learning systems Ivanhoe sells. What will be Ivanhoe's expected operating income if the price increase is implemented? (Round per unit calculations to 2 decimal places eg. 52.75 and final answer to decimal places, eg. 5,275.) S Operating income e Textbook and Media Save for Later Attempts: 0 of 3 used Submit