Sandhillsells 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

$662,500$53Variable expenses265,00021.20Contribution margin397,500$31.80Fixed expenses249,000Operating income$148,500

(a)

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

Contribution margin ratioenter contribution margin ratio in percentages rounded to 0 decimal places

%Variable cost ratioenter variable cost ratio in percentages rounded to 0 decimal places

%

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(b1)

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

Breakeven sales$

enter breakeven sales amount in dollars

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(b2)

What isSandhill's margin of safety?

Margin of safety$

enter margin of safety amount in dollars

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(c)

IfSandhill'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.)

Net Operating income will increase by$

enter net operating income increase amount in dollars

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(d)

Sandhill's managers have determined that variable costs per unit will increase by15% 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 a3% decrease in the number of learning systemsSandhillsells. What will beSandhill'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.)

Operating income$

enter operating income amount in dollars rounded to 0 decimal places