assume that variable cost increase to 45% of the current sales price and fix costs increase by $12,000 per month. If Sunland were to raise its sales price 10% to cover these new costs, but the number of blankets sold were to drop by 6% what would be the new annual operating income?

h 3: Homework Question 3 of 4 4.17/5.25 View Policies Show Attempt History Current Attempt in Progress Sunland Monograms sells stadium blankets that have been monogrammed with high school and university emblems. The blankets retail for $50 throughout the country to loyal alumni of over 3,000 schools. Sunland's variable costs are 43% of sales, fixed costs are $114.000 per month. (a1) Your answer is correct. Calculate contribution margin ratio. (Round ratio to 2 percentage places. e.3.0.38 - 38%.) 57 26 Contribution margin ratio eTextbook and Media Attempts: 1 of 12 used 3: Homework Question 3 of 4 4.17 / 6.25 E Your answer is correct What is Sunland's annual breakeven point in sales dollars? (Use the rounded contribution margin ratio calcuated in the previous part to compute breakeven sales.) Breakeven sales $ 2400000 e Textbook and Media Attempts: 1 of 12 used (b) Your answer is correct. Sunland currently sells 106,000 blankets per year. If sales volume were to increase by 17%, by how much would operating income increase? (Round answer to decimal places, e.g. 5,275.) $ 513570 Operating income (c) Your answer is correct. Assume that variable costs increase to 45% of the current sales price and fixed costs increase by $12,000 per month. If Sunland were to raise its sales price by 10% to cover these new costs, what would be the new annual breakeven point in sales dollars? (Round sales price to 2 decimal places, e.g. 52.75 and final answer to 0 decimal places, eg. 5,275.) $ 0 Breakeven sales e Textbook and Media Your answer is incorrect. Assume that variable costs increase to 45% of the current sales price and fixed costs increase by $12,000 per month. If Sunland were to raise its sales price 10% to cover these new costs, but the number of blankets sold were to drop by 6%, what would be the new annual operating income? (Round sales price to 2 decimal places, eg, 52.75 and final answer to O decimal places, eg. 5,275.) $ The new annual operating income e Textbook and Media Save for later Last saved 3 hours ago Attempts: 1 of 12 used Submit Answer Saved work will be auto-submitted on the due date