Calculate the variable cost per king size sheet set Cost plus Pricing Given the variable cost and assuming the manufacturer has total fixed costs of $600,000 and estimated first year sales of 30,000 sets of sheets, determine the consumer price if the company desires a 30 percent return on sales Using the consumer price that you calculated in question 2, what is the breakeven sales volume Raw cotton Spinning weaving dyeing Cut sew finishing Material transportation Factory fee Inspection and import fees Ocean freight insurance Warehousing Packaging Promotion Customer shipping Cost King Size Set $28 00 $12 00 $10 00 $ 3 00 $16 00 $14 00 $5 00 $ 8 00 $15 00 $30 00 $15 00

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Question: Calculate the variable cost per king-size sheet set. Cost-plus Pricing: Given the variable cost and assuming the manufacturer has total fixed costs of $600,000 and

Calculate the variable cost per king-size sheet set. Cost-plus Pricing: Given

Calculate the variable cost per king-size sheet set.
Cost-plus Pricing: Given the variable cost and assuming the manufacturer has total fixed costs of $600,000 and estimated first year sales of 30,000 sets of sheets, determine the consumer price if the company desires a 30 percent return on sales.
Using the consumer price that you calculated in question #2, what is the breakeven sales volume?

Raw cotton Spinning/weaving/dyeing Cut/sew/finishing Material transportation Factory fee Inspection and import fees Ocean freight/insurance Warehousing Packaging Promotion Customer shipping Cost/King-Size Set $28.00 $12.00 $10.00 $ 3.00 $16.00 $14.00 $5.00 $ 8.00 $15.00 $30.00 $15.00

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