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In-class Exercise. Chan Co. sells pants wholesale to major retailers across USA. Each pant has a selling price of USP S50 with UVC 536 in
In-class Exercise. Chan Co. sells pants wholesale to major retailers across USA. Each pant has a selling price of USP S50 with UVC 536 in variable costs of goods sold. The company has fixed manufacturing costs of $1,000,000 and fixed marketing costs of 50,000. Sales commissions are paid to the wholesale sales representatives ADDITIONAL UVC = 8% X 550 = 54 8% of revenues. The company has an income tax rate of 30%. Required: i. Determine the UIT contribution margin (UCM) and the contribution margin percentage of Chan Co. SIO ( AND 20% 2. Determine the operating income of Chan Co if Chan Co expects to sell 200,000 pants next year. $ 500,000 3. How many pants must Chan sell in order to break even
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