Carla Vista Monograms sells stadium blankets that have been monogrammed with high school and university emblems. The blankets retail for $43 throughout the country to loyal alumni of over 3,800 schools. Carla Vistas variable costs are 41% of sales; fixed costs are $118,000 per month.

(a1)

Correct answer iconYour answer is correct.

Calculate contribution margin ratio. (Round ratio to 2 percentage places, e.g. 0.38 = 38%.)

Contribution margin ratio

%

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Attempts: 2 of 12 used

(a2)

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What is Carla Vistas annual breakeven point in sales dollars? (Use the rounded contribution margin ratio calcuated in the previous part to compute breakeven sales.)

Breakeven sales

$

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Attempts: 1 of 12 used

(b)

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Carla Vista currently sells 126,000 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

$

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Attempts: 1 of 12 used

(c)

Assume that variable costs increase to 46% of the current sales price and fixed costs increase by $11,800 per month. If Carla Vista were to raise its sales price by 12% 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.)

Breakeven sales

$