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?