Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The Shirt Works sells a large varlety of tee shirts and sweatshirts. Steve Hooper, the owner, Is thinking of expanding his sales by hiring high
The Shirt Works sells a large varlety of tee shirts and sweatshirts. Steve Hooper, the owner, Is thinking of expanding his sales by hiring high school students, on a commission basls, to sell sweatshirts bearing the name and mascot of the local high school. These sweatshirts would have to be ordered from the manufacturer slx weeks in advance, and they could not be returned because of the unlque printing required. The sweatshirts would cost Hooper $24.00 each with a minlmum order of 173 sweatshirts. Any additional sweatshirts would have to be ordered In Increments of 173. Since Hooper's plan would not require any additional facilitles, the only costs assoclated 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 $48.00 each. Hooper would pay the students a commission of $7.00 for each shirt sold. Required: 1. What level of unit sales and dollar sales is needed to attain a target profit of $11,764 ? 2 Assume that Hooper places an Initlal order for 173 sweatshirts. What is his break-even point in unit sales and dollar sales? (Round your Intermedlate calculatlons, round "Break-even point In unit sales" up to the nearest whole unit and round "Break-even point in dollar sales" to the nearest whole dollar.) 3. How many sweatshirts would Hooper need to sell to earn a target profit of $13,234 ? (Round final answer up to the nearest whole unit.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started