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can someone show me how to do the new annual operating income (D)? Thanks you Sandhill Monograms sells stadium blankets that have been monogrammed with
can someone show me how to do the new annual operating income (D)? Thanks you
Sandhill 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 2.100 schools. Sandhill's variable costs are 41% of sales; fixed costs are $118,000 per month (a1) Your answer is correct. Calculate contribution margin ratio. (Round ratio to 2 percentage places, eg. 0.38 - 38%.) Contribution margin ratio 59% e Textbook and Media Attempts: 1 of 12 used (a2) Your answer is correct. What is Sandhill'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 Your answer is correct. Sandhill currently sells 100,000 blankets per year. If sales volume were to increase by 17%, by how much would operating income increase? (Round answer to 0 decimal places, e.g. 5,275.) Operating income 501500 e Textbook and Media Attempts: 1 of 12 used (c) Your Answer Correct Answer (Used) Assume that variable costs increase to 47% of the current sales price and fixed costs increase by $10,000 per month. If Sandhill were to raise its sales price by 11% 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.) 2,664.000 Breakeven sales > Assume that variable costs increase to 47% of the current sales price and fixed costs increase by $10,000 per month. If Sandhill were to raise its sales price 11% 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 0 decimal places, eg. 5,275.) The new annual operating incomeStep by Step Solution
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