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

59%

a2) 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.)

2,400,000

**b) 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.)