Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please help me with the blank boxes Perfect Fit Jeans Co. sells blue jeans wholesale to major retailers across the country Each pair of jeans
Please help me with the blank boxes
Perfect Fit Jeans Co. sells blue jeans wholesale to major retailers across the country Each pair of jeans has a selling price of $40 with $31 in variable costs of goods sold. The company has fixed manufacturing costs of and fixed marketing costs of S300,000. Sales commissions are paid to the wholesale sales reps at 5% of revenues. The company has an income tax rate of 20%. Read the Leguirements_ Select the formula labels, enter the amounts and calculate the breakeven number of pair of jeans. Fixed costs Contribution margin per unit 7.00 Breakeven number of units 200,000 Requirement 2a. How many jeans must the company sell in order to reach a target operating income of S500,000? Select the formula labels, enter the amounts and calculate the number of jeans required to be sold to reach a target operating income of $500,000. (Round your answer up to the nearest whole unit.) Fixed costs Target operating income Contribution margin per unit 7.00 Quantity of units required to be sold 271,429 Requirement 2b. How many jeans must the company sell in order to reach a net income of $500,000? Now, select the formula labels, enter the amounts and calculate the number of jeans required to be sold to reach net income of $500,000. (Round pur answer up to the nearest whole unit.) Fixed costs Target operating income 625,000 Contribution margin per unit 7.00 Quantity of units required to be sold 289,286 Requirement 3a. How many jeans would Perfect Fit have to sell to earn the net income in part 2b if the contribution margin per unit increases by SO/m Select the formula labels, enter the amounts and calculate the number of jeans required to earn the net income in part 2b if the contribution margin per unit increases by 5%. (Round your answer up to the nearest whole unit) Fixed costs Target operating income 625,000 Contribution margin per unit 7.35 Quantity of units required to be sold 275,511 Requirement 3b. How many jeans would Perfect Fit have to sell to eam the net income in part 2b if the selling price is increased to $42.00. Select the formula labels, enter the amounts and calculate the pair of jeans required to earn the net income in part 2b ifthe selling price is increased to $42.00. (Round interim calculations to three decimal places, SX_XXX Round your answer up to the nearest whole unit.) Fixed costs Target operating income Contribution margin per unit Quantity of units required to be sold
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started