d. new variable cost: .45 x $50 =$22.50 per unit new fixed expenses: $1,440,000 + ($10,000 x 12 months) = $1,560,000 new sales price: $50 x 1.1 = $55 per unit new contribution margin: $55 - $22.50 = $32.50 per blanket new sales volume: 100,000 x .95 = 95,000 blankets Sales - VC - FC = Operating Income ($32.50 x 95,000) - $1,560,000 = $1,527,500