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Please help ASAP! Thank you!! PLEASE HELP THIS IS DUE IN 20 MINUTES!! 5 Hoodys for Good manufactures and sells hooded sweatshirts. The company locates
Please help ASAP! Thank you!! PLEASE HELP THIS IS DUE IN 20 MINUTES!!
5 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 intemational 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 intemational charities. Cost information is summarized below Variable Costs Direct Materials Direct Labor Variable Manufacturing Overhead 0.50 per unit produced Shipping $3.80 per unit produced S3.30 per unit produced $3.80 per unit donated Fixed Costs Salaries Advertising Production Equipment $28,000 per month $68,000 per month S48,000 per month Answer each of the following independent questions. 1. Assume that the price of each sweatshirt sold is $35 a. How much contribution margin is earned on each unit sold to a paying customer? (Round your final answers to 2 decimal places.) Margin per unit b. How much contribution margin is lost on each unit donated to charity? (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.) tion Margin per unit c.If one sweatshirt is donated for each one sold, what is the weighted-average contribution margin per unit produced? (Round your answers to 2 decimal places.) hted-Average Contribution Margin per unit d. How many total units must be produced to break-even? How many must be sold and how many donated? Sold Donated Total 2. If the oompany expects to sell 4,000 sweatshirts and donate 4,000 sweatshirts per month, what price must be charged to eam a target profit of $28,000 per month? per unit 3. Assume that Hoodys for Good's managers are trying to decide whether to set the price at $45 or $65. If the price is set at $45, they think they can sell 10,800 units (and donate 10,800 units). If the price is set at $65, they only expect to be able to sell (and donate) 6,500 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 chargeStep by Step Solution
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