Question: Work Wear sells a single product - work gloves for use by construction workers and home garden enthusiasts. The owner, Pat Abenaki, is thinking of
Work Wear sells a single productwork gloves for use by construction workers and home garden enthusiasts. The owner, Pat Abenaki,
is thinking of growing sales during the summer season by hiring a student fulltime from a local community college, on a commission
basis, to sell gloves bearing the name and logo of a popular local junior hockey team for June, July, and August.
The gloves would have to be ordered from the manufacturer four weeks in advance. and they could not be returned because of the
unique printing required. A minimum initial order of pairs of gloves would be required at a cost of $ per pair. Additional orders
would have to be made in increments of pairs of gloves.
The gloves would be sold for $ per pair and the student would be paid a commission of $ for each pair of gloves sold plus a
monthly salary of $
Required:
To make the gloves project worthwhile, Abenaki would require a $ profit for the three months before taxes. What level of unit
sales and dollar sales would be required to reach this target net operating income?
Note: Round your intermediate calculations to decimal places.
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