Blossom Monograms sells stadium blankets that have been monogrammed with high school and university emblems. The...

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Blossom Monograms sells stadium blankets that have been monogrammed with high school and university emblems. The blankets ret

Your answer is correct. What is Blossoms annual breakeven point in sales dollars? (Use the rounded contribution margin ratio

(c) X Your answer is incorrect. Assume that variable costs increase to 45% of the current sales price and fixed costs increas

business accounting

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Answer 1

Answer #1

c
Revised selling price	55.00	=50*1.10
Revised Variable cost	22.50	=50*45%
Contribution margin per unit	32.50	=55-22.5
Contribution margin ratio	59.09%	=32.50/55

Annual fixed costs	1596000	=(118000+15000)*12
Divide by Contribution margin ratio	59.09%
Breakeven sales	2700940	or 2700965

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Answer 2

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