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. How many blankets and stuffed mascots will Blake need to sell each month in order to break even? (Round per unit to 2 decimal places and final answers to 0 decimal places, e.g. 5,275.) blankets mascots

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter6: Merchandising Transactions
Section: Chapter Questions
Problem 22Q: The following is select account information for August Sundries. Sales: $850,360; Sales Returns and...
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(g)
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.
How many blankets and stuffed mascots will Blake need to sell each month in order to break even? (Round per unit to 2 decimal
places and final answers to O decimal places, e.g. 5,275.)
blankets
mascots
Transcribed Image Text:(g) 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. How many blankets and stuffed mascots will Blake need to sell each month in order to break even? (Round per unit to 2 decimal places and final answers to O decimal places, e.g. 5,275.) blankets mascots
Using the following income statements, prepare a contribution margin income statement for March. (Round per unit answers to 2
decimal places, e.g. 52.75.)
Sales revenue
Cost of goods sold
Gross profit
Rent expense
Wages expense
Shipping expense
Utilities expense
Advertising expense
Insurance expense
Operating income
February
$25,000
10,000
15,000
1,500
3,500
1,100
750
1,000
585
$6,565
March
$37,500
15,000
22,500
1,500
5,000
1,650
750
1,400
585
$11,615
Transcribed Image Text:Using the following income statements, prepare a contribution margin income statement for March. (Round per unit answers to 2 decimal places, e.g. 52.75.) Sales revenue Cost of goods sold Gross profit Rent expense Wages expense Shipping expense Utilities expense Advertising expense Insurance expense Operating income February $25,000 10,000 15,000 1,500 3,500 1,100 750 1,000 585 $6,565 March $37,500 15,000 22,500 1,500 5,000 1,650 750 1,400 585 $11,615
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