Answer Happy

Crane 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 Variable expenses Contribution margin Fixed expenses Operating income Total $765,000 306,000 459,000 312,000 $147,000 Per Unit $51 20.40 $30.60

(d). Crane'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 2% decrease in the number of learning systems Crane sells. What will be Crane'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 O decimal places, e.g. 5,275.) Operating income eTextbook and Media