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 2,100 schools. Blossom’s variable costs are 43% of sales; fixed costs are $114,000 per month.
Assume that variable costs increase to 45% of the current sales price and fixed costs increase by $12,000 per month. If Blossom were to raise its sales price by 10% 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.)
Based on the information available in the question, we can answer as follows:-
Break even point in units = Fixed costs/Contribution Margin per unit
Contribution Margin per unit = Sales Price per unit - Variable cost per unit
Revised Sales price per unit = $50 + $50(10%)
Revised sales price per unit = $50 + $5
Revised sales price per unit = $55
Variable cost = $55 * 45% = $24.75
Contribution margin per unit = $55 - $24.75
Contribution margin per unit = $30.25
Fixed costs = $12,000 per month * 12 months = $144,000
Annual Break even in units = $144,000/$30.25 per unit
Annual Break even in units = 4,760.3306
Annual Break even in units = 4,760 units(Rounded)
Please let me know if you have any questions via comments and all the best :) !
Blossom Monograms sells stadium blankets that have been monogrammed with high school and university emblems. The...
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 2,100 schools. Blossom’s variable costs are 43% of sales; fixed costs are $114,000 per month. Assume that variable costs increase to 45% of the current sales price and fixed costs increase by $12,000 per month. If Blossomwere to raise its sales price by 10% to cover these new costs, what would be...
Blossom Monograms sells stadium blankets that have been monogrammed with high school and university emblems. The blankets retail for $40 throughout the country to loyal alumni of over 1,000 schools. Blossom’s variable costs are 40% of sales; fixed costs are $120,000 per month. Assume that variable costs increase to 45% of the current sales price and fixed costs increase by $10,000 per month. If Blossom were to raise its sales price by 10% to cover these new costs, what would...
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 2,100 schools. Blossom’s variable costs are 43% of sales; fixed costs are $114,000 per month. Assume that variable costs increase to 45% of the current sales price and fixed costs increase by $12,000 per month. If Blossom were to raise its sales price 10% to cover these new costs, but the number...
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 2,100 schools. Blossom’s variable costs are 43% of sales; fixed costs are $114,000 per month. Blossom currently sells 148,000 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.)
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...
Blossom Monograms sells stadium blankets that have been monogrammed with high school and university emblems. The blankets retail for $43 throughout the country to loyal alumni of over 3,500 schools. Blossom’s variable costs are 41% of sales; fixed costs are $118,000 per month. (b) Your answer is incorrect. Blossom currently sells 103,000 blankets per year. If sales volume were to increase by 15%, by how much would operating income increase? (Round answer to 0 decimal places, e.g. 5,275.) Operating income...
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...
Cullumber Monograms sells stadium blankets that have been monogrammed with high school and university emblems. The blankets retail for $42 throughout the country to loyal alumni of over 3,300 schools. Cullumber’s variable costs are 42% of sales; fixed costs are $116,000 per month. Assume that variable costs increase to 45% of the current sales price and fixed costs increase by $14,300 per month. If Cullumber 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 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...
Cullumber 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 4,000 schools. Cullumber’s variable costs are 42% of sales; fixed costs are $116,000 per month. Assume that variable costs increase to 45% of the current sales price and fixed costs increase by $12,500 per month. If Cullumber were to raise its sales price by 11% to cover these new costs, what would...