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(d) Assume that variable costs increase to 45% of the current sales price and fixed costs increase by $12,000 per month. If S
3 of 4 4.17 / 6.25 Sunland Monograms sells stadium blankets that have been monogrammed with high school and university emblem


stion 3 of 4 4.17 / 6.25 What is Sunlands annual breakeven point in sales dollars? (Use the rounded contribution margin rati
Ch 3: Homework Question 3 of 4 4.17 / 6.25 Your answer is correct. Assume that variable costs increase to 45% of the current
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Answer #1

Calculate net operating income

Sales (3000*94%*55) 155100
Variable cost (3000*94%*31.175) 87913.50
Contribution margin 67186.50
Fixed cost (114000+12000) 126000
Net operating income (loss) 58813.50 or 58814
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