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True You Jeons Co, sells blue jeans wholetwe to major telailors across the country. Each pair of jeans has a selling price of $60 with
True You Jeons Co, sells blue jeans wholetwe to major telailors across the country. Each pair of jeans has a selling price of $60 with $40 in variabie costs of goods sold. The company has ficed manulacturng costs of $3250,000 and foed marketing cosis of $250,000. Sales commissons are paid to the wholesale sales reps at 10% of reverues. The company has an income tax rate of 20% Read the tesviremests A.quirement 1. How mary jeane must True You sell in order to breat even? Select the formula labels, enter the amounts and calculate the breateven number of pair of jeans. 1. How many jeans must True You sell in order to break even? 2. 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 ? 3. 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 8%. b. The selling price is increased to $62.00. c. The company outsources manufacturing to an overseas company, increasing variable costs per unit by $2.00 and saving 60% of fixed manufacturing costs
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