50.1K

Verified Solution

Link Copied!

3c plz!!

Wholesale Jeans Co, sels blue jeans wholesale to major retallors across the country. Each pair of jeans has a seling price of \$20 with $15 in variable costs of gcods sold. The company has fxed manulacturing costs of $730,000 and fred marketing costs of $150,000. Seles commissions are paid to the wholosale sales reps at 5% of revenues. The company has an income tax rate of 20% Read the reavitemerts Requirement 1. How mary jeans must Wholesale sell in order to break even? Select the formula labels, enter the amounts and calculate the breakoven number of pair of jears. Requirement 2a. How many jeans must the company sell in order to reach a target operating income of $400,000 ? Requirement 2b. How many ieans must the company sel in order to reach a net income of $400,000% 1. How many jeans must Wholesale sell in order to break even? 2. How many jeans must the company sell in order to reach a. A target operating income of $400,000 ? b. A net income of $400,000 ? 3. How many jeans would Wholesale have to sell to earn the net income in requirement 2b if (Consider each requirement independently.) a. The contribution margin per unit increases by 12%. b. The selling price is increased to $23.00. c. The company outsources manufacturing to an overseas company, increasing variable costs per unit by $1.00 and saving 50% of fixed manufacturing costs. Requirement 3c. How many jeans would Wholosale have to sel to earn the net income in part 20 if the company cutsources manulacturing to an overteas company increasing variabie toosts pe unit by $1,00 and saving 50% of foxed manufacturing costs Select the formula labela, enter the amourts and calculate the number of jeans required to eam the net income in part 20 if the company outscurces manutacfuring to an overseas compary increasing variable costs per unit by 1.00 and saving 50% of foced manulacturing cots. (Round your answer up to the neareat whole unt)

Answer & Explanation Solved by verified expert

See Answer