Crane 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		$765,000		$51
Variable expenses		306,000		20.40
Contribution margin		459,000		$30.60
Fixed expenses		312,000
Operating income		$147,000

(a)

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

Contribution margin ratio		enter contribution margin ratio in percentages rounded to 0 decimal places	%
Variable cost ratio		enter variable cost ratio in percentages rounded to 0 decimal places	%

(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

(b2)

What is Crane's margin of safety?

Margin of safety

$enter margin of safety amount in dollars

(c)

If Crane'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

(d)

Crane's managers have determined that variable costs per unit will increase by20% 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 a2% decrease in the number of learning systems Crane sells. What will be Crane'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