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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 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 could not be returned
because of the unique printing required. The sweatshirts would cost Hooper $ each with a minimum order of
sweatshirts. Any additional sweatshirts would have to be ordered in Increments of
Because 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
$ each. Hooper would pay the students a commission of $ for each shirt sold.
Requlred:
What level of unit sales and dollar sales is needed to attain a target profit of $
Assume that Hooper places an Inltial order for sweatshirts. What is his breakeven point in unit sales and dollar
sales?
Note: Round your Intermedlate calculations, round "Breakeven polnt In unit sales" up to the nearest whole unit
and round "Breakeven polnt In dollar sales" to the nearest whole dollar.
How many sweatshirts would Hooper need to sell to earn a target profit of $
Note: Round final answer up to the nearest whole unlt.
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