Assume that variable costs increase to 46% of the current sales price and fixed costs increase by $12,700 per month. If Pharoah were to increase its selling price by 12% to cover these new costs, but the number of blankets sold were to decrease by 5%, what would be the new annual operating income?

Answer rating: 100% (QA)

Answer To solve this problem we first need to determine the current annual operating income We can u... View the full answer