Question
February March Sales Revenue $25,000 $37,500 Cost of Goods Sold 10,000 15,000 Gross Profit 15,000 22,500 Rent Expense 1,500 1,500 Wages Expense 3,500 5,000 Shipping
| February | March |
Sales Revenue | $25,000 | $37,500 |
Cost of Goods Sold | 10,000 | 15,000 |
Gross Profit | 15,000 | 22,500 |
Rent Expense | 1,500 | 1,500 |
Wages Expense | 3,500 | 5,000 |
Shipping Expense | 1,250 | 1,875 |
Utilities Expense | 750 | 750 |
Advertising Expense | 750 | 875 |
Insurance Expense | 400 | 400 |
Operating Income | $ 6,850 | $12,100
|
Refer back to the original information. Ricardo has decided to add stadium blankets to his product line. He has found a supplier who will provide the blankets for $32, and he plans to sell them for $55. All other variable costs currently incurred for selling mascots will be incurred for selling blankets at the same rate. Additional fixed costs of $350 per month will be incurred. He believes he can sell one blanket for every three stuffed mascots. How many blankets and stuffed mascots will Ricardo need to sell each month in order to break-even (show calculations)?
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