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have been lost and idk why any help would be awesome Problem 5-24 (Algo) Break-Even and Target Profit Analysis [LO5-5, LO5-6] The Shirt Works sells
have been lost and idk why any help would be awesome
Problem 5-24 (Algo) Break-Even and Target Profit Analysis [LO5-5, LO5-6] The Shirt Works sells a large varlety of tee shirts and sweatshirts. Steve Hooper, the owner, Is thinking of expandling his sales by hiring high school students, on a commission basis, to sell sweatshirts bearing the name and mascot of the local high school. These sweatshirts would have to be ordered from the manufacturer six weeks in advance, and they could not be returned because of the unlque printing required. The sweatshirts would cost Hooper $24.00 each with a minimum order of 150 sweatshirts. Any additional sweatshirts would have to be ordered in Increments of 150. SInce Hooper's plan would not require any additional facilitles, the only costs assoclated with the project would be the costs of the sweatshirts and the costs of the sales commissions. The selling price of the sweatshirts would be $48.00 each. Hooper would pay the students a commission of $4.00 for each shirt sold. Required: 1. What level of unit sales and dollar sales is needed to attain a target profit of $12,000 ? 2. Assume that Hooper places an Initial order for 150 sweatshirts. What is his break-even point in unit sales and dollar sales? (Round your intermedlate calculations and final answers to the nearest whole number.) 3. How many sweatshirts would Hooper need to sell to earn a target profit of $13,500 ? (Round your flnal answer to the nearest whole number.)Step by Step Solution
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