Hoodys for Good manufactures and sells hooded sweatshirts. The company locates its manufacturing facilities in areas with high

unemployment rates and provides on$-$site day care 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:

Required:

Answer each of the following independent questions.

Assume that the price of each sweatshirt sold is $$40.$

a$.$ How much contribution margin is earned on each unit sold to a paying customer?

b$.$ How much contribution margin is lost on each unit donated to charity?

c$.$ If one sweatshirt is donated for each one sold, what is the weighted$-$average contribution margin per unit produced?

d$.$ How many total units must be produced to break even? How many must be sold and how many donated?

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 $$33,600$ per month?

Assume that Hoodys for Good's managers are trying to decide whether to set the price at $$50$ or $$70.$ If the price is set at $$50,$ they

think they can sell $11,200$ units $($and donate $11,200$ units$).$ If the price is set at $$70,$ they only expect to be able to sell $($and donate$)7,000$

units.

a$.$ If the company's goal is to maximize economic profit, what price should they charge?

b$.$ If the company's goal is to do the most social good, what price should they charge?