Variable Costs
Direct Materials	$3.80 per unit produced
Direct Labor	$3.30 per unit produced
Variable Manufacturing Overhead	$0.50 per unit produced
Shipping	$3.80 per unit donated
Fixed Costs
Salaries	$28,000 per month
Advertising	$68,000 per month
Production Equipment	$48,000 per month

1. Assume that the price of each sweatshirt sold is $35.

d. How many total units must be produced to break even? How many must be sold and how many donated?

2. If the company expects to sell 4,000 sweatshirts and donate 4,000 sweatshirts per month, what price must be charged to earn a target profit of $28,000 per month?

3. Assume that Hoodys for Good's managers are trying to decide whether to set the price at $45 or $65. If the price is set at $45, they think they can sell 10,800 units (and donate 10,800 units). If the price is set at $65, they only expect to be able to sell (and donate) 6,500 units.

a. If the companys goal is to maximize economic profit, what price should they charge?

b. If the companys goal is to do the most social good, what price should they charge?