True You Jeans Co$.$ sells blue jeans wholesale to major retailers across the country. Each pair of jeans has a selling price of $$35$ with $$25$ in variable costs of goods sold. The

company has fixed manufacturing costs of $$1,175,000$ and fixed marketing costs of $$450,000.$ Sales commissions are paid to the wholesale sales reps at $10\%$ of revenues. The

company has an income tax rate of $20\%.$

Requirement $1.$ How many jeans must True You sell in order to break even?

Select the formula labels, enter the amounts and calculate the breakeven number of pair of jeans.

Requirements

How many jeans must True You sell in order to break even?

How many jeans must the company sell in order to reach

a$.$ A target operating income of $$420,000?$

b$.$ A net income of $$420,000?$

How many jeans would True You have to sell to earn the net income in

requirement $2b$ if $($Consider each requirement independently.$)$

a$.$ The contribution margin per unit increases by $10\%.$

b$.$ The selling price is increased to $$37\mathrm{.}50.$

c$.$ The company outsources manufacturing to an overseas company,

increasing variable costs per unit by $$2\mathrm{.}00$ and saving $70\%$ of fixed

manufacturing costs.