a)What is Ivanhoes contribution margin ratio? Its variable cost ratio?

b) Compute breakeven sales and margin of safety

c)If Ivanhoes sales were to increase by $100,000 with no change in fixed expenses, by how much would operating income increase?

d) Ivanhoes 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 18% 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 Ivanhoes expected operating income if the price increase is implemented?

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 Sales revenue $689,000 $53 Variable expenses 275,600 21.20 Contribution margin 413,400 $31.80 Fixed expenses 279,000 Operating income $ 134,400