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Question Three Fashions, Inc. is a retail store that sells sweaters and jackets. In the past. It ha a supplier for $20 per unit and
Question Three Fashions, Inc. is a retail store that sells sweaters and jackets. In the past. It ha a supplier for $20 per unit and had no fixed costs for tnis line of could produce its own sweaters. The projected data for producing ts clothing. However, Fashions has the opportunity to acquire a small manufacturing own sweaters are as follows: Selling price per unit S30.00 $15.00 $150,000 Variable cost per unit Total fixed costs (per month) Required: 1. If Fashions acquired the manufacturing facility, how many sweaters would it have to produce in order to break even? (Round your answer up, to the nearest whole number.) 2. To earn an after tax profit (TA) of $125,000 per month, how many sweaters would Fashions have to sell if it buys the sweaters from the supplier? If it produces its own is 30%. (Round your answers up, to sweaters? Fashion's com bined income tax rate, the nearest whole number.) 3. What is the profit-indifference sales volume in terms of the two options under consideration? (Ignore income tax effects.)
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