Reference no: EM132627153

                                                              February                             March

Sales revenue                                 $25,000                     $37,500

Cost of goods sold                            10,000                        15,000

Gross profit                                        15,000                     22,500

Rent expense                                      1,500                       1,500

Wages expense                                     3,500                    5,000

Shipping expense                                   1,100                    1,650

Utilities expense                                       750                    750

Advertising expense                               1000                      1400

Insurance expense                                    585                   585

Operating income                                    6516                     $11,615

Refer back to the original information. Blake has decided to add stadium blankets to his product line. He has found a supplier who will provide the blankets for $32, and he plans to sell them for $60. All other variable costs currently incurred for selling mascots will be incurred for selling blankets at the same rate. Additional fixed costs of $125 per month will be incurred. He believes he can sell one blanket for every four stuffed mascots.

Question 1: How many blankets and stuffed mascots will Blake need to sell each month in order to break even?