Answered step by step
Verified Expert Solution
Question
1 Approved Answer
im confused i need help on part C-G im just confused what to do c. Blake plans to sell 1.500 stuffed maicots next month. How
im confused
i need help on part C-G im just confused what to do
c. Blake plans to sell 1.500 stuffed maicots next month. How much operating income can Blake expect to earn next month if he realizes his plansed sales? d. Blake wasn't happy with the projected income statement you showed him for a sales level of 1,500 staffed mascota. He wants to know how many atuffed mascots he will need to sell to cam $5.555 in operating income. As a safety net, be also wants to know how many stuffed mascots he will need to sell to break even. e. Blake is evaluating two options to iscrease the number of mascots sold next month. First, he believes he can inerease sales by advertising in the university newspaper. Blake can parchase a package of 12 ads over the next month for a total of $1.500. He believes the ads will increase the number of stuffed mascots sold from 1.500 to 2.200. A second option. woald be to reduce the selling price. Blake believes a 159 decrease is the price will result in 2,400 mascots sold. Which plan should alake implement? At what level of sales would he be indifferent between the two plans (L.e, at what level of sales do the two plans generate the same operating income)? Round all amounts to two decimal places. f. Just after Blake completed an income projection for 2,200 stuffed maseots, his supplier called to inform him of a so\$ increase in cost of goods sold, effective imenediately. Blake knows that he cannot pass the entire increase on to his customers, but thinks he can pass on half of the so\$ increase while suffering only a 10$ decrease in units sold. Shogld 8 lake respond to the increase in cost of goods sold with an iscrease in price? Round all amounts to two decimal places. g. 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 blaakets for $32, and be 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 5125 per month will be incurred. He believes he can sell one blanket for every foor stuffed nascots. How many blankets and stuffed mascots will Blake need to sell each month in order to break eyen Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started