Question: how would I do part D? Oriole sells a learning system that helps preschool and elementary students learn basic math facts and concepts. The company's





Oriole 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: What is Oriole's contribution margin ratio? Its variable cost ratio? (Round ratios to 2 percentage ploces, eg. 0.38=38% ) Contribution margin ratio 8 Variable cost ratio % Compute breakeven sales. (Use the rounded contribution margin ratio calculated in the previous part to compute breakeven sales.) Breakeven sales What is Oriole's margin of safety? Margin of safety $ If Oriole's 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 Oriole's 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 12% increase in the sales price. Market research indicates that the price increase will result in a 3% decrease in the number of learning systems Oriole sells. What will be Oriole's expected operating income if the price increase is implemented? (Round per unit calculations to 2 decimal places e. 5.52.75 and final answer to O decimal places, e g. 5,275.) Operating income eTextbook and Media Attempts: 0 of 10 used
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
