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Carla Vista sells a learning system that helps preschool and elementary students learn basic math...

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Accounting

Carla Vista 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: sales revenue- $810,000, per unit $54, variable expense-$364,500, per unit $24.30, contribution margin- $445,500, per unit $29.70, fixed espense- $261,250, operating income-$184,250
Carla Vista'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 10% increase in the sales price. Market research indicates that the price increase will result in a 3% decrease in the number of learning systems Carla Vista sells. What will be Carla Vista'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.)

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