Crane 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:

		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

What is Cranes 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	%

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

What is Cranes margin of safety?

Margin of safety

$enter margin of safety amount in dollars

If Cranes sales were to increase by $100,000 with 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