Morgan Creations sells monogrammed baby blankets.The blankets sell for $36 each.Variable costs are $12 per blanket and fixed costs total $45,000.Morgan wishes to have operating income of $9,000.
Required:
a.How many blankets must Morgan sell to meet her target operating income?
b.If Morgan can cut her fixed costs by 20%, to reach her target income, how many blankets will she need to sell?

Question

Quizplus · Accepted Answer

The Answer of Morgan Creations sells monogrammed baby blankets.The blankets sell for $36 each.Variable costs are $12 per blanket and fixed costs total $45,000.Morgan wishes to have operating income of $9,000.
Required:
a.How many blankets must Morgan sell to meet her target operating income?
b.If Morgan can cut her fixed costs by 20%, to reach her target income, how many blankets will she need to sell?

Morgan Creations Sells Monogrammed Baby Blankets