Blue Jeans Co. sells blue jeans wholesale to major retallers across the country. Each pair of jeans has a seling price of 520 with $15 in variable costs of goods sold. The company has fised manufacturing coets of $730,000 and fixed marketing costs of $150,000. Sales commissions are pald to the wholesale sales reps at 5% of revenues, The compary has an inoome tax rate of 20% Read the teguimements Requirement 1. How many jeans must Bive soll in order to beeak even? Solect the fornula labeis, enter the amounts and calculate the breakeven number of pair of jeans. Requirement 2a. How many jeans nsust the company soll in onder to reach a target operating incame of $400,600 ? Belect the formula labeis, emer the amounts and caloulate the number of joans requred to be sold to reach a target operating income of 3409 .000. Rpound your answer wo fa the neaiest whole una.. sells blue jeans wholesale to major retailers across the country. Each pair of jeans has a selling price of $20 osts of $730,000 and fixed marketing costs of $150,000. Sales commissions are paid to the wholesale sales ements. Requirements 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 $400,000 ? b. A net income of $400,000 ? 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 12%. b. The selling price is increased to $23.00. c. The company outsources manufacturing to an overseas company, increasing variable costs per unit by $1.00 and saving 50% of fixed manufacturing costs. :ompany sell in order to reach a target operating income ind calculate the number of jeans required to be sold to Blue Jeans Co, sells blue jeans wholesale to major retailers across the country. Each pair of jeans has a selling price of $20 with $15 in variable costs of goods sold. The company has foxed manufacturing costs of $730,000 and fixed marketing costs of $150,000. Sales commissions are paid to the wholosale sales reps at 5% of revenues. The company has an income tax rate of 20% Read the robuirements. Requirement 1. How many jeans must Blue sell in order to break even? Select the formula labels, enter the amounts and calculate the breakeven number of pair of jeans. Requirement 2a. How many jeans must the company sel in ordor to reach a target operating income of 5400,000 ? Beloct the formula labole, enter the amounts and calculate the number of jeans requred to be sold to reach a target operating income of 5400,000 . (Round your answer wp to the nearist whob unt) Blue Jeans Co. sells blue jeans whole Sach pair of jeans has a selling price of $20 with $15 in variable manufacturing costs of $730,000 and Jmmissions are paid to the wholesale sales reps at 5% of rever Read the requirements. Requirement 1. How many jeans mus Select the formula labels, enter the an rof pair of jeans. zven number of units 220,000 Requirement 2a. How many jeans mi Jet operating income of $400,000 ? Select the formula labels, enter the ar Zquired to be sold to reach a target operating income of $400,000
