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Company X is a retail store that sells shoes and boots in the past. It has bought all its shoes from a supplier for $15
Company X is a retail store that sells shoes and boots in the past. It has bought all its shoes from a supplier for $15 per unit and the selling price is $25 per unit however, company X has the opportunity to acquire a small manufacturing facility, where it can produce its own shoes the projected data for producing its own shoes or as follows for a pair of shoes selling price $25; variable cost $5; total fix cost per year $125,000
1) if company, X acquired the manufacturing facility how many pairs of shoes per year would it have to produce to break even round your answer up to the nearest whole unit?
2) company eggs combined income tax rate is estimated at 35% round up your answers to the nearest whole number of units
a) to earn an annual after-tax profit of 100,000 how many pairs of shoes for company eggs have to sell if it buys the shoes from the supplier?
b) how many pairs would it have to sell if it produces its own shoes?
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