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Hoodys for Good manufactures and sells hooded sweatshirts. The company locates its manufacturing facilities in areas with high unemployment rates and provides on$-$site day care and education for its employees' children. The company recently started a "one for one" program where, for each sweatshirt sold, it will donate one sweatshirt to an international charity to provide to a child in need. The customer pays the shipping cost for items purchased, but the company pays to ship to the international charities.

Cost information is summarized below:

Required: $\backslash (\backslash$square $\backslash )$

Answer each of the following independent questions.

$1.$ Assume that the price of each sweatshirt sold is $\backslash (\backslash$$ $35\backslash ).$

a$.$ How much contribution margin is earned on each sweatshirt sold to a paying customer?

b$.$ How much contribution margin is lost on each sweatshirt donated to charity?

c$.$ If one sweatshirt is donated for each one sold, what is the weighted$-$average contribution margin per sweatshirt produced?

d$.$ How many total sweatshirts must be produced to break even? How many must be sold and how many donated?

$2.$ If the company expects to sell $5,000$ sweatshirts and donate $5,000$ sweatshirts per month, what price must be charged to earn a target profit of $\backslash (\backslash$$ $15,600\backslash )$ per month?

$3.$ Assume that Hoodys for Good's managers are trying to decide whether to set the price at $\backslash (\backslash$$ $50\backslash )$ or $\backslash (\backslash$$ $65\backslash ).$ If the price is set at $\backslash (\backslash$$ $50\backslash ),$ they think they can sell $10,900$ units $($and donate $10,900$ units$).$ If the price is set at $\backslash (\backslash$$ $65\backslash ),$ they only expect to be able to sell $($and donate$)8,000$ units.

a$.$ If the company's goal is to maximize economic profit, what price should they charge?

b$.$ If the company's goal is to do the most social good, what price should they charge?

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