Problem
Sandhill Monograms sells stadium blankets that have monogrammed with high school and university emblems. The blankets retail for $50 throughout the country to loyal alumni of over 2,100 schools. Sandhill's variable costs are 40% of sales; fixed costs are $118,000 per month.
Assume that variable costs increase to 40% of the current sales price and fixed costs increase by $15,000 per month. If Sandhill were to raise its sales price by 10% to cover these new costs, what would be the new annual breakeven point in sales?