Blossom Monograms sells stadium blankets that have been monogrammed with high school and university emblems. The blankets retail for $47 throughout the country to loyal alumni of over 2,100 schools. Blossoms variable costs are 43% of sales; fixed costs are $114,000 per month.

Assume that variable costs went up by 47% of the current sales price and fixed costs went up by $12,100 per month. If Blossom were to raise its sales price 11% to cover these new costs but the number of blankets sold were to drop by 5%, what would be the new annual operating income?

This is everything thus far. There is only one blank for the question being asked.

1 A) Contribution Margin ratio: 57%

Annual breakeven point in sales dollars: $2,400,000

Blossom currently sells 148,000 blankets per year. If sales volume were to increase by 16 percent, by how much would operating income increase? Operating income would increase by $634,387

Assume that vc increase to 47% of the current sales price and fixed costs increase by 12,100 per month. If Blossom were to raise its sales price by 11% to cover these new costs, what would be the new annual breakeven point in sales dollars?

Breakeven sales: $2,624,456