Sheridan sells a learning system that helps preschool and elementary students learn basic math facts and concepts. The companys income statement from last month is as follows:

A. Compute breakeven sales.

B. What is Sheridan's margin of safety?

C. If sheridan's sales were to increase by $100,000 with no change in fixed expenses, by how much would operating income increase by?

D. Sheridan's managers have determined that variable costs per unit will increase by 15% 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 Sheridan sells. What will be sheridan's expected operating income if the price increase is implemented?

Total Per Unit Sales revenue $572,000 $52 Variable expenses 171,600 15.60 Contribution margin 400,400 $36.40 Fixed expenses 294,000 Operating income $ 106,400