The Shirt Works sells a large variety of tee shirts and sweatshirts. Steve Hooper, the owner,...
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The Shirt Works sells a large variety of tee shirts and sweatshirts. Steve Hooper, the owner, is thinking of expanding his sales by hiring high school students, on a commission basis, to sell sweatshirts bearing the name and mascot of the local high school. These sweatshirts would have to be ordered from the manufacturer six weeks in advance, and they could not be returned because of the unique printing required. The sweatshirts would cost Hooper $16.00 each with a minimum order of 235 sweatshirts. Any additional sweatshirts would have to be ordered in increments of 235. Since Hooper's plan would not require any additional facilities, the only costs associated with the project would be the costs of the sweatshirts and the costs of the sales commissions. The selling price of the sweatshirts would be $32.00 each. Hooper would pay the students a commission of $7.00 for each shirt sold. Required: 1. What level of unit sales and dollar sales is needed to attain a target profit of $8,460? 2. Assume that Hooper places an initial order for 235 sweatshirts. What is his break-even point in unit sales and dollar sales? (Round your intermediate calculations and final answers to the nearest whole number.) 3. How many sweatshirts would Hooper need to sell to earn a target profit of $9,500? (Round your final answer to the nearest whole number.) 1. Unit sales needed to attain the target profit sweatshirts Dollar sales needed to attain the target profit 2. Break-even point in unit sales sweatshirts Break-even point in dollar sales 3. Number of sweatshirts sweatshirts The Shirt Works sells a large variety of tee shirts and sweatshirts. Steve Hooper, the owner, is thinking of expanding his sales by hiring high school students, on a commission basis, to sell sweatshirts bearing the name and mascot of the local high school. These sweatshirts would have to be ordered from the manufacturer six weeks in advance, and they could not be returned because of the unique printing required. The sweatshirts would cost Hooper $16.00 each with a minimum order of 235 sweatshirts. Any additional sweatshirts would have to be ordered in increments of 235. Since Hooper's plan would not require any additional facilities, the only costs associated with the project would be the costs of the sweatshirts and the costs of the sales commissions. The selling price of the sweatshirts would be $32.00 each. Hooper would pay the students a commission of $7.00 for each shirt sold. Required: 1. What level of unit sales and dollar sales is needed to attain a target profit of $8,460? 2. Assume that Hooper places an initial order for 235 sweatshirts. What is his break-even point in unit sales and dollar sales? (Round your intermediate calculations and final answers to the nearest whole number.) 3. How many sweatshirts would Hooper need to sell to earn a target profit of $9,500? (Round your final answer to the nearest whole number.) 1. Unit sales needed to attain the target profit sweatshirts Dollar sales needed to attain the target profit 2. Break-even point in unit sales sweatshirts Break-even point in dollar sales 3. Number of sweatshirts sweatshirts
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Answer rating: 100% (QA)
1 Unit sales needed to attain the target profit 796 sweatshirts 1114438195 Dollar sales ... View the full answer
Related Book For
Managerial Accounting
ISBN: 9781260247787
17th Edition
Authors: Ray Garrison And Eric Noreen And Peter Brewer
Posted Date:
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