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What would be the annual breakeven point in sales dollars

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Question - The Eagles 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. Their 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 be the annual breakeven point in sales dollars?

Reference no: EM132181018

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