Question
Sunland Monograms sells stadium blankets that have been monogrammed with high school and university emblems. The blankets retail for $50 throughout the country to loyal
Sunland 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 3,000 schools. Sunlands variable costs are 43% of sales; fixed costs are $114,000 per month
Contribution margin ratio: 57%
What is Sunlands annual breakeven point in sales dollars? 2400000
Sunland currently sells 106,000 blankets per year. If sales volume were to increase by 17%, by how much would operating income increase? (Round answer to 0 decimal places, e.g. 5,275.)
Operating income | $ |
C) Assume that variable cost increase to 20% of the current sale price and fixed cost increase by $12000 per month. If Sunland were to riase its sales price by 10% to cover these new costs, what would be the new annual breakeven point in sales dollars?
D) Assume that variable costs increase to 20% of the current sales price and fixed costs increase by $12,000 per month. If Sunland were to raise its sales price 10% to cover these new costs, but the number of blankets sold were to drop by 5% what would be the new anual operating income?
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