Essay
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?
Correct Answer:
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a.($45,000 + $9,000) ÷ ($36 ̶ ...View Answer
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