Hoodie's Sweatshirts- I sell sweatshirts for $50 each. My variable cost for each shirt is $35.

My Fixed Cost is $125,000.

Contribution Margin is $15

5. Calculate how many shirts I must sell to have a TOI (Target Operating Income) of $250,000. Prepare an analysis that checks your work.

6. Calculate how many shirts I must sell to have a TOI of $250,000 given a 30% tax rate. Again prepare an analysis that checks your work.