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 $18.00 each with a minimum order of 200 sweatshirts. Any additional sweatshirts would have to be ordered in increments of 50. 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 $36.00 each. Hooper would pay the students a commission of $8.00 for each shirt sold. Required: 1. What level of unit sales and dollar sales is needed to attain a target profit of $7,00o0? 2. Assume that Hooper places an initial order for 200 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.) 1.Unit sales needed to attain the target profit Dollar sales needed to attain the target profit 2. Break-even point in unit sales Break-even point in dollar sales sweatshirts sweatshirts Lin Corporation has a single product whose selling price is $136 per unit and whose variable expense is $68 per unit. The company's monthly fixed expense is $32,000. Required: 1. Calculate the unit sales needed to attain a target profit of $7,100. (Do not round intermediate calculations.) 2. Calculate the dollar sales needed to attain a target profit of $9,200. (Round your intermediate calculations to the nearest whole number.) 1. Units sales to attain target profit units 2 Dollar sales to attain target profit Lindon Company is the exclusive distributor for an automotive product that sells for $38.00 per unit and has a CM ratio of 30%. The company's fixed expenses are $228,000 per year. The company plans to sell 23,000 units this year. Required: 1. What are the variable expenses per unit? (Round your "per unit" answer to 2 decimal places.) 2. What is the break-even point in unit sales and in dollar sales? 3. What amount of unit sales and dollar sales is required to attain a target profit of $114,000 per year? 4. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $3.80 per unit. What is the company's new break-even point in unit sales and in dollar sales? What dollar sales is required to attain a target profit of $114,000? 1. Variable expense per unit Break-even point in units 2 Break-even point in dollar sales 3. Unit sales needed to attain target profit Dollar sales needed to attain target profit 4. New break-even point in unit sales New break-even point in dollar sales Dollar sales needed to attain target profit
