Ivanhoe Monograms sells stadium blankets that have been monogrammed with high school and university emblems. The blankets retail for $45 throughout the country to loyal alumni of over 3,500 schools. Ivanhoe’s variable costs are 41% of sales; fixed costs are $118,000 per month.
Assume that variable costs increase to 45% of the current sales price and fixed costs increase by $13,400 per month. If Ivanhoe were to raise its sales price 11% to cover these new costs, but the number of blankets sold were to drop by 5%, what would be the new annual operating income?
Selling price = $45 + 11% = $49.95
Variable cost = $45 X 45% = $20.25
Fixed cost = $118,000 + $13,400 = $131,400
Blankets sold = 3,500 - 5% = 3,325
Sales (3,325 X $49.95) | $166,084 |
(Less): Variable cost (3,325 X $20.25) | $67,331 |
Contribution margin | $98,753 |
(Less): Fixed cost | $131,400 |
Net operating loss | ($32,647) |
Ivanhoe Monograms sells stadium blankets that have been monogrammed with high school and university emblems. The...
Ivanhoe Monograms sells stadium blankets that have been monogrammed with high school and university emblems. The blankets retail for $45 throughout the country to loyal alumni of over 3,500 schools. Ivanhoe’s variable costs are 41% of sales; fixed costs are $118,000 per month. Assume that variable costs increase to 45% of the current sales price and fixed costs increase by $13,400 per month. If Ivanhoe were to raise its sales price by 11% to cover these new costs, what would...
Ivanhoe Monograms sells stadium blankets that have been monogrammed with high school and university emblems. The blankets retail for $45 throughout the country to loyal alumni of over 3,500 schools. Ivanhoe’s variable costs are 41% of sales; fixed costs are $118,000 per month. Ivanhoe currently sells 130,000 blankets per year. If sales volume were to increase by 16%, by how much would operating income increase? (Round answer to 0 decimal places, e.g. 5,275.)
Ivanhoe Monograms sells stadium blankets that have been monogrammed with high school and university emblems. The blankets retail for $45 throughout the country to loyal alumni of over 3,500 schools. Ivanhoe’s variable costs are 41% of sales; fixed costs are $118,000 per month. What is Ivanhoe’s annual breakeven point in sales dollars? (Use the rounded contribution margin ratio calcuated in the previous part to compute breakeven sales.)
Ivanhoe Monograms sells stadium blankets that have been monogrammed with high school and university emblems. The blankets retail for $45 throughout the country to loyal alumni of over 3,500 schools. Ivanhoe’s variable costs are 41% of sales; fixed costs are $118,000 per month. (a1) Calculate contribution margin ratio. (Round ratio to 2 percentage places, e.g. 0.38 = 38%.) Contribution margin ratio %
Blossom 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 3,500 schools. Blossom's variable costs are 40% of sales; fixed costs are $118,000 per month (c) Assume that variable costs increase to 45% of the current sales price and fixed costs increase by $15,000 per month. If Blossom were to raise its sales price by 10% to cover these new costs, what...
Sandhill 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 2,100 schools. Sandhill’s variable costs are 41% of sales; fixed costs are $118,000 per month. Assume that variable costs increase to 47% of the current sales price and fixed costs increase by $10,000 per month. If Sandhill were to raise its sales price by 11% to cover these new costs, what would...
Sandhill 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 2,100 schools. Sandhill’s variable costs are 40% of sales; fixed costs are $118,000 per month. Assume that variable costs increase to 45% of the current sales price and fixed costs increase by $15,000 per month. If Sandhill were to raise its sales price 10% to cover these new costs, but the number...
Sandhill 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 2,100 schools. Sandhill’s variable costs are 40% of sales; fixed costs are $118,000 per month. Assume that variable costs increase to 45% of the current sales price and fixed costs increase by $15,000 per month. If Sandhill were to raise its sales price by 10% to cover these new costs, what would...
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Sandhill 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 2,100 schools. Sandhill’s variable costs are 40% of sales; fixed costs are $118,000 per month. 3c) Assume that variable costs increase to 45% of the current sales price and fixed costs increase by $15,000 per month. If Sandhill were to raise its sales price by 10% to cover these new costs, what...