Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assume that variable costs increase to 46% of the current sales price and fixed costs increase by $15,000 per month. If Sunlandwere to raise its

image text in transcribedimage text in transcribedimage text in transcribed

Assume that variable costs increase to 46% of the current sales price and fixed costs increase by $15,000 per month. If Sunlandwere 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, e.g. 5,275.)

just need option C to be answered thank you

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 1,600 schools. Sunland's variable costs are 40% of sales; fixed costs are $120,000 per month. (21) Your answer is correct. Calculate contribution margin ratio. (Round ratio to 2 percentage places, e.g. 0.38 = 38%.) 60 % Contribution margin ratio e Textbook and Media Attempts: 1 of 4 used Question Part Score 0.5/0.5 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 eTextbook and Media Attempts: 1 of 4 used Question Part Score 0.5/0.5 (b) Your answer is correct. Sunland currently sells 131,000 blankets per year. If sales volume were to increase by 15%, by how much would operating income increase? (Round answer to 0 decimal places, e.g. 5,275.) $ Operating income 589500 (c) Your answer is incorrect. Assume that variable costs increase to 46% of the current sales price and fixed costs increase by $15,000 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 O decimal places, e.g. 5,275.) | Breakeven sales e Textbook and Media

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing With The Computer

Authors: Wayne S. Boutell

1st Edition

0520363329, 978-0520363328

More Books

Students also viewed these Accounting questions

Question

1. Let a, b R, a Answered: 1 week ago

Answered: 1 week ago