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:

Total

Per Unit

Sales revenue

$$650,000$ $$50$

Variable expenses

$227,50017\mathrm{.}50$

Contribution margin

$422,500$ $$32\mathrm{.}50$

Fixed expenses

$289,250$

Operating income

$ $133,250$

Question $1$: Compute breakeven sales.

$2$: What is Wildhorse$$s margin of safety

$3.$ If Wildhorse$$s sales were to increase by $$200,000$ with no change in fixed expenses, by how much would operating income increase?

$4.$ Wildhorse$$s managers have determined that variable costs per unit will increase by $16\%$ beginning next month. To offset this increase in costs, they are considering a $20\%$ increase in the sales price. Market research indicates that the price increase will result in a $3\%$ decrease in the number of learning systems Wildhorse sells. What will be Wildhorse$$s expected operating income if the price increase is implemented?