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# (d) Assume that variable costs increase to 45% of the current sales price and fixed costs...

(d) Assume that variable costs increase to 45% of the current sales price and fixed costs increase by \$10,000 per month. If Crane 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 sales price to 2 decimal places, e.g. 52.75 and final answer to O decimal places, e.g. 5,275.) The new annual operating income
Crane Monograms sells stadium blankets that have been monogrammed with high school and university emblems. The blankets retail for \$100 throughout the country to loyal alumni of over 1,000 schools. Crane's variable costs are 40% of sales; fixed costs are \$118,000 per month.

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