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Clothes for Good manufactures and sells sweatshirts. The company recently started a one for one program where for every sweatshirt sold they donate one sweatshirt

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Clothes for Good manufactures and sells sweatshirts. The company recently started a "one for one program where for every sweatshirt sold they donate one sweatshirt to an International charity to provide to a child in need. The customer pays for their own shipping costs on any items purchased, but the company pays the shipping costs for the item donated to the international charity Cost Information is summarized below. Variable costs Direct Materials Direct Labor Variable Manufacturing Overhead Shipping $3.00 per unit produced $2.50 per unit produced $8.50 per unit produced $3.00 per unit donated Fixed Costs Salaries Advertising Production Equipment $20,000 per month 560,000 per month $40.000 per month Answer each of the following independent questions Assume that the price of each sweatshirt sold is $30. Required: Answer the following four questions. 1. What is the contribution margin on each unit sold to a customer, before considering any Impact of the item donated to charity? In other words, to answer this requirement, ignore the donation aspect of the "one for one" program. (Round your answer to 2 decimal places. Negative amounts should be indicated by a minus sign.) Contribution Margin $ 21.00 per unit 2. What is the contribution margin on each unit donated to charity? (Round your answer to 2 decimal places. Negative amounts should be indicated by a minus sign.) Contribution Margin $ 9.00 per unit 3. If you assume the units sold plus the units donated is equal to the units produced, how many total units must be produced to break even? This should include units sold and units donated. Total units produced (.e., sold and donated) 4. if the company expects to sell 5,000 sweatshirts and donate 5,000 sweatshirts per month, what price must be charged to earn a target pront of $20,000 per month? Price per unit

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