90.2K

Verified Solution

Link Copied!

Please answer Question B1,B2,C and D

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: Total Per Unit Sales revenue $810,000 $54 Variable expenses 364,500 24,30 Contribution margin 445.500 $29.70 Fixed expenses 261.250 Operating income $184.250 (a) Your answer is correct. What is Carla Vista's contribution margin ratio? its variable cost ratio? (Round ratlos to 2 percentage places, est: 0.38 - 386) 55 Contribution margin ratio % 45 Variable cost ratio %6 (61) Compute breakeven sales. (Use the rounded contribution margin ratio calculated in the previous port to compute breakevensales.) Breakeven sales $ e Textbook and Media Save for later Attempts: 0 of 3 used Submit Anwar (52) What is Carla Vista's margin of safety? $ Margin of safety 2:22M (c) If Carla Vista's sales were to increase by $200,000 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 (d) 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 es 52.75 and final answer to O decimal places, es 15,275.) $ Operating income

Answer & Explanation Solved by verified expert

See Answer