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Sheridan 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 $572,000 $52 Variable expenses 171,600 15.60 Contribution margin 400,400 $36.40 Fixed expenses 294.000 Operating income $ 106,400 (a) What is Sheridan's contribution margin ratio? Its variable cost ratio? (Round ratios to 2 percentage places, eg. 0.38 = 38%.) Contribution margin ratio 70 % Variable cost ratio % (61) Compute breakeven sales. (Use the rounded contribution margin ratio calculated in the previous part to compute breakeven sales.) $ Breakeven sales e Textbook and Media Save for Later Attempts: 0 of 3 used Submit Answer (b2) What is Sheridan's margin of safety? Margin of safety If Sheridan'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.) $ 70000 Net Operating income will increase by e Textbook and Media Attempts: 1 of 3 used (d) Your answer is incorrect. Sheridan's managers determined th variable costs per unit will increase beginning non 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 Sheridan sells. What will be Sheridan's expected operating income if the price increase is implemented? (Round per unit calculations to 2 decimal places eg. 52.75 and final answer to O decimal places, e.g. 5,275.) $ Operating income

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