Question
justforYou Jeans Co. sells blue jeans wholesale to major retailers across the country. Each pair of jeans has a selling price of $35 with $25
justforYou Jeans Co. sells blue jeans wholesale to major retailers across the country. Each pair of jeans has a selling price of $35 with $25 in variable costs of goods sold. The company has fixed manufacturing costs of $1,175,000 and fixed marketing costs of $450,000. Sales commissions are paid to the wholesale sales reps at 10% of revenues. The company has an income tax rate of 20%.
Requirement 2b.How many jeans must the company sell in order to reach a net income of $420,000?
Now, select the formulalabels, enter the amounts and calculate the number of jeans required to be sold to reach net income of $420,000
Requirement 3c. How many jeans would JustforYou have to sell to earn the net income in part 2b if the company outsources manufacturing to an overseas company increasing variable costs per unit by $2.00 and saving 70% of fixed manufacturing costs.
Select the formulalabels, enter the amounts and calculate the number of jeans required to earn the net income in part 2b if the company outsources manufacturing to an overseas company increasing variable costs per unit by 2.00 and saving 70% of fixed manufacturing costs. (Round your answer up to the nearest wholeunit.)
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