Right Fit Jeans Co. sells blue jeans wholesale to major retailers across the country. Each pair...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Right Fit Jeans Co. sells blue jeans wholesale to major retailers across the country. Each pair of jeans has a selling price of $40 with $30 in variable costs of goods sold. The company has fixed manufacturing costs of $1,050,000 and fixed marketing costs of $150,000. Sales commissions are paid to the wholesale sales reps at 10% of revenues. The company has an income tax rate of 20%. Read the requirements. 1,200,000 0.00 200,000 Requirement 2a. How many jeans must the company sell in order to reach a target operating income of $300,000? Select the formula labels, enter the amounts and calculate the number of jeans required to be sold to reach a target operating income of $300,000. (Round your answer up to the nearest whole unit.) ( Fixed costs + ( $ 1,200,000 Target operating income 300,000 ) ) Contribution margin per unit 6.00 = Quantity of units required to be sold 250,000 Requirement 2b. How many jeans must the company sell in order to reach net income of $300,000? Now, select the formula labels, enter the amounts and calculate the number of jeans required to be sold to reach net income of $300,000. (Round your answer up to the nearest whole unit.) ( Fixed costs + ( $ 1,200,000 + $ Target operating income 375,000 ) ) Contribution margin per unit = 6.00 = Quantity of units required to be sold 262,500 Requirement 3a. How many jeans would Right Fit have to sell to earn the net income in part 2b if the contribution margin per unit increases by 20%. Select the formula labels, enter the amounts and calculate the number of jeans required to earn the net income in part 2b if the contribution margin per unit increases by 20%. (Round your answer up to the nearest whole unit.) + + Quantity of units = required to be sold Right Fit Jeans Co. sells blue jeans wholesale to major retailers across the country. Each pair of jeans has a selling price of $40 with $30 in variable costs of goods sold. The company has fixed manufacturing costs of $1,050,000 and fixed marketing costs of $150,000. Sales commissions are paid to the wholesale sales reps at 10% of revenues. The company has an income tax rate of 20%. Read the requirements. 1,200,000 0.00 200,000 Requirement 2a. How many jeans must the company sell in order to reach a target operating income of $300,000? Select the formula labels, enter the amounts and calculate the number of jeans required to be sold to reach a target operating income of $300,000. (Round your answer up to the nearest whole unit.) ( Fixed costs + ( $ 1,200,000 Target operating income 300,000 ) ) Contribution margin per unit 6.00 = Quantity of units required to be sold 250,000 Requirement 2b. How many jeans must the company sell in order to reach net income of $300,000? Now, select the formula labels, enter the amounts and calculate the number of jeans required to be sold to reach net income of $300,000. (Round your answer up to the nearest whole unit.) ( Fixed costs + ( $ 1,200,000 + $ Target operating income 375,000 ) ) Contribution margin per unit = 6.00 = Quantity of units required to be sold 262,500 Requirement 3a. How many jeans would Right Fit have to sell to earn the net income in part 2b if the contribution margin per unit increases by 20%. Select the formula labels, enter the amounts and calculate the number of jeans required to earn the net income in part 2b if the contribution margin per unit increases by 20%. (Round your answer up to the nearest whole unit.) + + Quantity of units = required to be sold
Expert Answer:
Related Book For
Horngrens Cost Accounting A Managerial Emphasis
ISBN: 978-0134475585
16th edition
Authors: Srikant M. Datar, Madhav V. Rajan
Posted Date:
Students also viewed these accounting questions
-
On January 1, 2024. Cameron Incorporated bought 20% of the outstanding common stock of Lake Construction Company for $380 million cash, giving Cameron the ability to exercise significant influence...
-
Perfect Fit Jeans Co. sells blue jeans wholesale to major retailers across the country. Each pair of jeans has a selling price of $50 with $35 in variable costs of goods sold. The company has fixed...
-
Tuff Kids Jeans Co. sells blue jeans wholesale to major retailers across the country. Each pair of jeans has a selling price of $ 30 with $ 21 in variable costs of goods sold. The company has fixed...
-
Three Zero Coupon Bonds (ZCB) are issued on the market. They each have face value of 100 and maturity, respectively, of 1 year, 3 years and 4 years. Assume the first bond is sold for 99.01, the...
-
Write SQL update statements to do the following on the database schema shown in Figure 1.2. (a) Insert a new student in the database. (b) Change the class of student 'Smith' to 2. (c) Insert a new...
-
ECON 212 Homework #3 Please complete all problems and show work for full credit. 1. Suppose that the economy is on a balanced growth path in the Romer model, and then, in the year 2020, research...
-
Use the comparative balance sheet from Application Problem 17-1 to complete this problem. Instructions: 1. Based on CyberOptics comparative balance sheet prepared in Application Problem 17-1,...
-
Wright Lighting Fixtures forecasts its sales in units for the next four months as follows: March ............................. 4,000 April ............................... 10,000 May...
-
What are some viewpoints on how a nursing home can provide data for one key measure or indicator of financial performance?
-
Alton Incorporated is working at full production capacity producing 24,000 units of a unique product. Manufacturing costs per unit for the product are as follows: Direct materials Direct labor...
-
Discuss some of the circumstances where mechanical ventilation is required in the welding standards. Do you believe this requirement is reasonable? Why, or why not? Your response must be at least 200...
-
What do we call the difference between the balances of a Plant Asset account and its related accumulated depreciation account in cost accounting?
-
What are the challenges associated with securing distributed systems and cloud computing environments, including issues related to data privacy, access control, and the shared responsibility model...
-
Discuss three similarities and three differences the United States experienced during the Great Depression and the financial crisis of 2007-2009.
-
Why we need marketing plan and marketing action plan in milktea shop business? Explain your learnings. One hundred words and more do not plagiarise
-
The price of a 3 items plate is $8.80 and $1.70 for a 22oz drink. Rice costs $0.33, 1 serving of sweet chicken cost $0.67, 1 serving of broccoli beef costs $0.65, 1 serving of angus steak costs...
-
At the beginning of its fiscal year, Lakeside Inc. leased office space to LTT Corporation under a seven-year operating lease agreement. The contract calls for quarterly rent payments of $25,000 each....
-
Critic Ivor Smallbrain is watching the horror movie Salamanders on a Desert Island. In the film, there are 30 salamanders living on a desert island: 15 are red, 7 blue and 8 green. When two of a...
-
Find \(n\), given that both \(n\) and \(\sqrt{n-2}+\sqrt{n+2}\) are positive integers.
-
Environmental Business Consultants, LLC (EBC) has a contract with Terrabean Coffee, a large retail coffee company with 5,000 shops across North America, to manage the companys waste disposal and...
Study smarter with the SolutionInn App