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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:

Variable Costs

Direct Materials $$4\mathrm{.}60$ per unit produced

Direct Labor $$4\mathrm{.}10$ per unit produced

Variable Manufacturing Overhead $$0\mathrm{.}70$ per unit produced

Shipping $$4\mathrm{.}60$ per unit donated

Fixed Costs

Salaries $$36,000$ per month

Advertising $$65,700$ per month

Production Equipment $$56,000$ per month

Required:

Answer each of the following independent questions.

$1.$Assume that the price of each sweatshirt sold is $$40.$

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

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

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

c$.$How many total sweatshirts must be produced to break even?

d$.$How many must be sold and how many donated?

$2.$If the company expects to sell $5,500$ sweatshirts and donate $5,500$ sweatshirts per month, what price must be charged to earn a target profit of $$21,600$ per month?

$3.$Assume that Hoodys for Good's managers are trying to decide whether to set the price at $$50$ or $$65.$ If the price is set at $$50,$ they think they can sell $11,600$ units $($and donate $11,600$ units$).$ If the price is set at $$65,$ 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?

PLEASE HELP

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