Urban Outfitters manufactures basic and premium jeans. The basic jeans are sold at $50 each, and the premium jeans are sold at $90 each. The variable cost of making the basic jeans is $30 each. It costs an extra $20 to make the premium jeans. It takes 15 labor hours to produce 100 pairs of basic jeans and 20 labor hours to produce 100 pairs of premium jeans. There are 5,000 hours of labor time available for production each week. The maximum weekly sales for the basic and premium jeans are 2,000 and 1,000 pairs, respectively. Fixed production costs total $500,000 per year. All selling costs are fixed.

Required: (a) Calculate the optimal production level in number of pairs for each product. (b) Prepare the ledgers for both types of jeans showing all necessary entries. (c) Determine the break-even point in pairs for each type of jeans