Question

ONLY need help on part d, A-C are correct

Davis, Managerial Accounting, 3e Help System Announcements Question 3 SandhillTot sells a learning system that helps preschool and ele month is as follows: Sales revenue Variable expenses Contribution margin Fixed expenses Operating income Total $682,000 238,700 443,300 292,500 $ 150,800 Per Unit $55 19.25 $35.75 (a) Your answer is correct. What is Sandhill Tot's contribution margin ratio? Its variable cost Contribution margin ratio 65% Variable cost ratio 35% SHOW SOLUTION to search

a) on picture

b) What is SandhillTots margin of safety?

$232300

c) If SandhillTots sales were to increase by $100,000 with no charge in fixed expenses, by how much would operation income increase

d) SandhillTots managers have determined that variable coats 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 in a 2% decrease in the number of learning systems SandhillTot sells.

What is the operating income??

Answer 1

rate positively ..

	Given that
	Unit sold =		12400
	Sales price per unit		55
	variable cost per unit		19.25
	Fixed cost =		292500.00
	With the changes we will have below
	Unit sold =	12400*98%	12152
	Sales price per unit	=55*110%	60.50
	variable cost per unit	19.25*120%	23.10
	Fixed cost =		292500
	Contribution =		454,484.80
	Fixed cost =		292,500.00
	Operating income =		161,984.80