Assume that variable costs increase to 50% of the current sales price and fixed costs increase...

 

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Assume that variable costs increase to 50% of the current sales price and fixed costs increase by $9,200 per month. If Sheridan were to raise its sales price 10% to cover these new costs, but the number of blankets sold were to drop by 5%, what would be the new annual operating income? (Round answers to O decimal places, e.g. 25,000.) New annual operating income $ Assume that variable costs increase to 50% of the current sales price and fixed costs increase by $9,200 per month. If Sheridan were to raise its sales price 10% to cover these new costs, but the number of blankets sold were to drop by 5%, what would be the new annual operating income? (Round answers to O decimal places, e.g. 25,000.) New annual operating income $

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To calculate the new annual operating income we first need to determine the original annual operating income Lets assume the original annual operating income was X Given Variable costs increase to 50 ... View the full answer