Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please provide a correct answer for number of sweatshirts The Shirt Works sells a large variety of tee shirts and sweatshirts. Steve Hooper, the owner,

please provide a correct answer for number of sweatshirts

image text in transcribed

The Shirt Works sells a large variety of tee shirts and sweatshirts. Steve Hooper, the owner, is thinking of expanding his sales by hiring high school students, on a commission basis, to sell sweatshirts bearing the name and mascot of the local high school. These sweatshirts would have to be ordered from the manufacturer six weeks in advance, and they could not be returned because of the unique printing required. The sweatshirts would cost Hooper $8 each with a minimum order of 75 sweatshirts. Any additional sweatshirts would have to be ordered in increments of 75. Since Hooper's plan would not require any additional facilities, the only costs associated with the project would be the costs of the sweatshirts and the costs of the sales commissions. The selling price of the sweatshirts would be $13.50 each. Hooper would pay the students a commission of $1.50 for each shirt sold. Required: 1. What level of unit sales and dollar sales is needed to attain a target profit of $1,200? 2. Assume that Hooper places an initial order for 75 sweatshirts. What is his break-even point in unit sales and dollar sales? 3. How many sweatshirts would Hooper need to sell to earn a target profit of $1,320? X Answer is complete but not entirely correct. 1. Unit sales needed to attain the target profit 300 sweatshirts 1. Dollar sales needed to attain the target profit $ 4,050 50 sweatshirts 2. Break-even point in unit sales 2. Break-even point in dollar sales 675 3. Number of sweatshirts 330 X sweatshirts

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting for Governmental and Nonprofit Entities

Authors: Jacqueline Reck, Suzanne Lowensohn, Earl Wilson

17th edition

78025826, 978-1259564239, 1259564231, 978-0078025822

More Books

Students also viewed these Accounting questions