The Shirt Works sells a large variety of tee shirts and sweatshirts. Steve Hooper, the owner,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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 $20.00 each with a minimum order of 237 sweatshirts. Any additional sweatshirts would have to be ordered in increments of 237. 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 $40.00 each. Hooper would pay the students a commission of $6.00 for each shirt sold. Required: 1. What level of unit sales and dollar sales is needed to attain a target profit of $13,272? 2. Assume that Hooper places an initial order for 237 sweatshirts. What is his break-even point in unit sales and dollar sales? (Round your intermediate calculations, round "Break-even point in unit sales" up to the nearest whole unit and round "Break-even point in dollar sales" to the nearest whole dollar.) 3. How many sweatshirts would Hooper need to sell to earn a target profit of $14,931? (Round final answer up to the nearest whole unit.) 1. Unit sales needed to attain the target profit 948 sweatshirts 1. Dollar sales needed to attain the target profit $ 37,920 2. Break-even point in unit sales 139 sweatshirts 2. Break-even point in dollar sales 3. Number of sweatshirts $ 5,560 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 $20.00 each with a minimum order of 237 sweatshirts. Any additional sweatshirts would have to be ordered in increments of 237. 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 $40.00 each. Hooper would pay the students a commission of $6.00 for each shirt sold. Required: 1. What level of unit sales and dollar sales is needed to attain a target profit of $13,272? 2. Assume that Hooper places an initial order for 237 sweatshirts. What is his break-even point in unit sales and dollar sales? (Round your intermediate calculations, round "Break-even point in unit sales" up to the nearest whole unit and round "Break-even point in dollar sales" to the nearest whole dollar.) 3. How many sweatshirts would Hooper need to sell to earn a target profit of $14,931? (Round final answer up to the nearest whole unit.) 1. Unit sales needed to attain the target profit 948 sweatshirts 1. Dollar sales needed to attain the target profit $ 37,920 2. Break-even point in unit sales 139 sweatshirts 2. Break-even point in dollar sales 3. Number of sweatshirts $ 5,560 sweatshirts
Expert Answer:
Answer rating: 100% (QA)
3 To calculate how many sweatshirts Hooper would need to sell to earn a target profit of 14931 we fi... View the full answer
Related Book For
Managerial Accounting
ISBN: 9781260247787
17th Edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
Students also viewed these accounting questions
-
x = 221, y = 115.7, = 2650.5, = 5349, y =1374.5 x = 22.1, y = 11.57, s, 7.19,s, = 2.00 Calculate the intercept, a. 27.13 b. 16.01 71.28 115,7
-
A rectangular loop of wire with sides 0.20 and 0.35 m lies in a plane perpendicular to a constant magnetic field (see part a of the drawing). The magnetic field has a magnitude of 0.65 T and is...
-
The figure shows the graphs of y = sin 96x and y = sin 2x as displayed by a TI-83 graphing calculator. The first graph is inaccurate. Explain why the two graphs appear identical. Y - sin 96x Y = sin...
-
The operating revenues and expenses of Panawin Enterprises for 2 0 2 1 are below:There are four additional transactions that impact the income statement: Machinery with a balance sheet ( book ) value...
-
A round concrete storm sewer pipe used to carry rainfall runoff from a parking lot is designed to be half full when the rainfall rate is a steady \(1 \mathrm{in}\)./hr. Will this pipe be able to...
-
The Bozeman Inn is trying to determine its break-even point. The inn has 75 rooms that are rented at $50 a night. Operating costs are as follows. Salaries ..........$8,500 per month Utilities...
-
During a class discussion, Jamie said that she changes the form of notetaking she uses depending on the complexity of the material she is reading. The teacher praised her methods for adjusting the...
-
Imagine you are set to give a presentation at a local school. Write a list of things you would want to double-check before the day of the presentation, focusing especially on equipment, both yours...
-
Find the unknown angle measure. 40 132 41 Drawing is not to scale. x =
-
Several major corporations have had to pay millions of dollars to settle "gender discrimination" lawsuits. As a result of these rulings, companies are very concerned with the parity of pay of their...
-
What is the role of Technology on distance learning . what is the importance of Technology on distance learning. What is the advantage and dis advantage of technology in distance learning.
-
How does lock contention affect the scalability of multi-threaded applications? What strategies do operating systems and developers use to reduce lock contention ?
-
FUNCTION 1. Write a function that takes a number and a character (as parameters) and prints a triangle of that size using the specified character. 2. Write a function that takes the radius of a...
-
A recent news item that deals with an issue of data security or information assurance. Summarize the data security incident using your own words in a paragraph.
-
Describe basic managerial approaches to implementing controls and how these are implemented.
-
Determine an expansion for the work done in a steady flow adiabatic process.
-
5 m 3 of gas at 8 bar and 180C is heated keeping the pressure same till the volume is doubled. Calculate (a) heat added, (b) external work done, and (c) change in internal energy during the process.
-
A heat engine receives 1000 kW of heat at constant temperature of 285C and rejects heat at 5C . The possible heat rejected are: (a) 840 kW, (b) 442 kW and (c) 300 kW. Comment on the results.
Study smarter with the SolutionInn App