Question

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.)

Answer 1

Hope you are doing well, Please refer the image attached below for the solution:

Solution Annual fixed Cast - $118000 X 12 months 2 $1416000 Annud B.E.P. Suter in $2 Fixed Costa on TTool-u 113 liesall Concübution marsün 7 $1416000 Te z $2400,000