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Hoodys for Good manufactures and sells hooded sweatshirts. The company locates its manufacturing facilities in areas with high unemployment rates and provides on-site daycare and

Hoodys for Good manufactures and sells hooded sweatshirts. The company locates its manufacturing facilities in areas with high unemployment rates and provides on-site daycare and education for its employees children. The company recently started a one for one program where they donate one sweatshirt for every one sold to an international charity to provide to a child in need. The customer pays the shipping cost for items purchased, but the company pays to ship to the international charities. Cost information is summarized below:

Variable Costs
Direct Materials $4.70 per unit produced
Direct Labor $4.20 per unit produced
Variable Manufacturing Overhead $0.80 per unit produced
Shipping $4.70 per unit donated
Fixed Costs
Salaries $37,000 per month
Advertising $62,750 per month
Production Equipment $57,000 per month

Answer each of the following independent questions.

If the company expects to sell 6,000 sweatshirts and donate 6,000 sweatshirts per month, what price must be charged to earn a target profit of $22,650 per month?

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