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Problem 5-24 (Algo) Break-Even and Target Profit Analysis [LO5-5, LO5-6] 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 $23.00 each with a minimum order of 248 sweatshirts. Any additional sweatshirts would have to be ordered in increments of 248. 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 $46.00 each. Hooper would pay the students a commission of $5.00 for each shirt sold. Required: 1. What level of unit sales and dollar sales is needed to attain a target profit of $17,856? 2. Assume that Hooper places an initial order for 248 sweatshirts. What is his break-even point in unit sales and dollar sales? (Round your intermediate calculations and final answers to the nearest whole number.) 3. How many sweatshirts would Hooper need to sell to earn a target profit of $20,100? (Round your final answer to the nearest whole number.) 1. Unit sales needed to attain the target profit sweatshirts 1. Dollar sales needed to attain the target profit 2. Break-even point in unit sales sweatshirts 2. Break-even point in dollar sales 3. Number of sweatshirts sweatshirts Exercise 5-8 (Algo) Compute the Margin of Safety [LO5-7] Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month's budget appear below: Selling price per unit $ 28 Variable expense per unit $ 16 Fixed expense per month $ 9, 840 Unit sales per month 970 Required: 1. What is the company's margin of safety? (Do not round intermediate calculations.) 2. What is the company's margin of safety as a percentage of its sales? (Round your percentage answer to 2 decimal places (i.e. 1234 should be entered as 12.34).) 1. Margin of safety (in dollars) 2. Margin of safety percentage %