what is math tot s margin of safety 613975

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Math Tot 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:

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Sales	$600,000	$12.00
Variable expenses	350,000	7.00
Contribution margin	250,000	$ 5.00
Fixed expenses	175,000
Fixed expenses	175,000
Operating income	$ 75,000
Operating income

Required

What is Math Tot”s contribution margin ratio? Its variable cost ratio?
What is Math Tot”s margin of safety?
If Math Tot”s sales were to increase by $100,000 with no change in fixed expenses, by how much would net operating income increase?
Math Tot”s managers have determined that variable costs per unit will increase by 16% 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 Math Tot sells. What will be Math Tot”s expected net operating income if the price increase is implemented?

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