Part E?

Total Per unit Sales 37500 12.5 Variable expenses Cost of goods sold 15000 5 Wages 4500 1.5 Shipping 1650 55 Advertising 1200 .40 Total variable expenses 22350 7.45 Contribution margin 15150 $ 5.05 Fixed expenses Rent 1500 Wages 500 Utilities V 750 Advertising 200 Insurance 585 Total fixed expenses 3535 Operating income 11615 (c) Your answer is correct. Blake plans to sell 1,500 stuffed mascots next month. How much operating income can Blake expect to earn next month if he realizes his planned sales? (Round per unit to 2 decimal places and final answer to 0 decimal places, e.g. 5,275.) Operating income $ 4040 e Textbook and Media Attempts: unlimited ( (d) Your answer is correct. Blake wasn't happy with the projected income statement you showed him for a sales level of 1,500 stuffed mascots. He wants to know how many stuffed mascots he will need to sell to earn $5,555 in operating income. (Round per unit to 2 decimal places and final answer to 0 decimal places, e.g. 5,275.) 1800 mascots As a safety net, he also wants to know how many stuffed mascots he will need to sell to break even. (Round per unit to 2 decimal places and final answer to 0 decimal places, e.g. 5,275.) 700 mascots e Textbook and Media Attempts: unlimited Blake is evaluating two options to increase the number of mascots sold next month. First, he believes he can increase sales by advertising in the university newspaper. Blake can purchase 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 would be to reduce the selling price. Blake believes a 15% decrease in the price will result in 2,400 mascots sold. Calculate the operating income for each options? (Round per unit to 2 decimal places and final answers to 0 decimal places, e.g. 5,275.) Operating Income Option 1 $ Option 2 $ Which plan should Blake implement? At what level of sales would he be indifferent between the two plans? (Round per unit to 2 decimal places and final answer to O decimal places, e.g. 5,275.) mascots e Textbook and Media