Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Shirt Works sells a large vorkety of tee shirts and swoatshirts. Steve Hooper, the owner, is thinking of expanding his sales by hiring high

image text in transcribed The Shirt Works sells a large vorkety of tee shirts and swoatshirts. Steve Hooper, the owner, is thinking of expanding his sales by hiring high school students, on a commission basis. to sell sweotshirts bearing the name and mascot of the local high school These sweatshins would have to be ordered from the manufactirer six weeks in advance, and they could not be returned because of the ungue printing required The sweatshits would cost Hooper $2000 each with a minimum order of 220 sweatshirts. Amy additional sweatshirts would have to be ordered in increments of 220 Since Hoopers plan would not require orry addituonal facilites. 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 $4000 each Hooper would pay the students a commission of $600 for each shirt sold Required: 1 What level of unit sales and dollar sales is needed to attain a target profit of $12,320 ? 2. Assume that Hooper places an initial order for 220 sweatshirts. What is his break-even point in unit sales and dollar sales? Note: Round your intermediate calculations, 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 karget profit of $13,860 ? Note: Round final answer up to the nearest whole unit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions