PART B

Sheridan Monograms sells stadium blankets that have been monogrammed with high school and university emblems. The blankets retail for $50 throughout the country to loyal alumni of over 4 200 schools. Sheridan's variable costs are 43% of sales; fixed costs are $120,000 per month (1) Your answer is correct Calculate contribution margin ratio (Round ratio to 2 percentage places es. 0.38 - 38%) Contribution margin ratio Your Answer Correct Answer (Used) x Your answer is incorrect A What is Sheridan's annual breakeven point in sales dollars? (Use the rounded contribution margin ratio calcuated in the previous part to compute breakeven sales.) $ Breakeven sales 210,524 (b) Sheridan currently sells 122,000 blankets per year. If sales volume were to increase by 15%, by how much would operating income increase? (Round answer to decimal places, eg,5,275) Operating income