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

MathTot 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:

Required
a. What is MathTot's contribution margin ratio? Its variable cost ratio?
b. What is MathTot's margin of safety?
c. If MathTot's sales were to increase by $100,000 with no change in fixed expenses, by how much would operating income increase?
d. MathTot'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 MathTot sells. What will be MathTot's expected operating income if the price increase isimplemented?

Per Unit Sales revenue Variable expenses Contribution margin Fixed expenses Operating income Total $600,000 210,000 390,000 292,500 97,500 $50.00 17.50 $32.50