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Someone answered this question wrong for me so I still don't really understand it, can someone please help me solve it correctly? CVP analysis, sensitivity
Someone answered this question wrong for me so I still don't really understand it, can someone please help me solve it correctly? CVP analysis, sensitivity analysis. Tuff Kids Jeans Co. sells blue jeans wholesale to major retailers across the country. Each has a selling price of $30 variable costs of goods sold. The company has fixed manufacturing costs of $1,200,000 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 25%. 1. How many jeans must Tuff Kids sel in order to break even? 2. How many jeans must the company sell in order to reach: a. a target operating income of $450,000? each require- b. a net income of $450,000? earn the net income in part 2b if (consider 3. How many jeans would Tuff Kids have to sell to ment independently). increases by 10% a. The contribution margin per unit b. The selling price is increased $32.50 company increasing variable costs per c. The company outsources manufacturing to an overseas unit by S2.00 and saving 60% of fixed manufacturing costs
Someone answered this question wrong for me so I still don't really understand it, can someone please help me solve it correctly?
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