Question
1. How many jeans must Blue sell in order to break even? 2. How many jeans must the company sell in order to reach
1. How many jeans must Blue sell in order to break even? 2. How many jeans must the company sell in order to reach a. A target operating income of $420,000? b. A net income of $420,000? 3. How many jeans would Blue have to sell to earn the net income in requirement 2b if (Consider each requirement independently.) a. The contribution margin per unit increases by 10%. b. The selling price is increased to $51.50. C. The company outsources manufacturing to an overseas company, increasing variable costs per unit by $1.00 and saving 70% of fixed manufacturing costs.
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