Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Pharoah Monograms sells stadium blankets that have been monogrammed with high school and university emblems. The blankets retail for $41 throughout the country to loyal

Pharoah Monograms sells stadium blankets that have been monogrammed with high school and university emblems. The blankets retail for $41 throughout the country to loyal alumni of over 1,800 schools. Pharoahs variable costs are 42% of sales; fixed costs are $116,000 per month. Assume that variable costs increase to 46% of the current sales price and fixed costs increase by $12,700 per month. If Pharoah were to raise its sales price by 12% to cover these new costs, what would be the new annual breakeven point in sales dollars? (Round sales price to 2 decimal places, e.g. 52.75 and final answer to 0 decimal places, e.g. 5,275.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions