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
1,100
1,650
Utilities expense
750
750
Advertising expense
1000
1400
Insurance expense
585
585
Operating income
6516
$11,615
Refer back to the original information. Blake 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 $60. All other variable costs currently incurred for selling mascots will be incurred for selling blankets at the same rate. Additional fixed costs of $125 per month will be incurred. He believes he can sell one blanket for every four stuffed mascots.
How many blankets and stuffed mascots will Blake need to sell each month in order to break even?
enter the number of mascots
mascots
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