1. 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 manufacturing costs of $1,200,000 and fixed marketing costs of $300,000. Sales commissions are paid to the wholesale sales reps at 10% of revenues. The company has an income tax rate of 25%. Required: a) How many jeans must Tuff Kids sell in order to break even? (10 pts) b) How many jeans must the company sell in order to reach: i. a target operating income of $450,000? (5 pts) ii. a net income of $450,000? (5 pts) c) How many jeans would TuffKids have to sell to earn the net income in part 2b if (consider each requirement independently). i. The selling price is increased to $32.50 (5 pts) ii. The company outsources manufacturing to an overseas company increasing variable costs per unit by $2.00 and saving 60% of fixed manufacturing costs. (10 pts)