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Previous question Great Fit Jeans Co. sells blue jeans wholesale to major retailers across the country. Each pair of jeans has a selling price of
Previous question Great Fit Jeans Co. sells blue jeans wholesale to major retailers across the country. Each pair of jeans has a selling price of $30 with $20 in variable costs of goods sold. The company has fixed manufacturing costs of $1,150,000 and fixed marketing costs of $250,000. Sales commissions are paid to the wholesale sales reps at 10% of revenues. The company has an income tax rate of 25%. Read the requirements. Requirement 1. How many jeans must Great Fit sell in order to break even? Select the formula labels, enter the amounts and calculate the breakeven number of pair of jeans. Fixed costs 1820000 Contribution margin per unit 7 = Breakeven number of units Bella Beauty manufactures and sells a face cream to small specialty stores in the greater Los Angeles area. It presents the monthly operating income statement shown here to George Sanchez, a potential investor in the business. Help Mr. Sanchez understand Bella Beauty's cost structure. (Click the icon to view the operating income statement.) Read the requirements. Della Cosmetics Operating Income Statement, June 2020
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