The CP Works is getting into the clothing business with sweatshirts. Ella Hoper, the owner,...

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Accounting

The CP Works is getting into the clothing business with sweatshirts. Ella Hoper, the owner, is thinking of generating her sales by hiring Cal Poly students, on a commission basis, to sell sweatshirts bearing a unique AI generated design. The sweatshirts would cost Hoper $9.50 each from Shein. She must embroider each sweatshirt with a new machine that rents for $500 per month for 3 months. The costs associated with the project would be the costs of the sweatshirts, the machine, the direct labor per sweatshirt for embroidering, and the costs of the sales commissions. The selling price of the sweatshirts would be $38.00 each. Hooper would pay the students a commission of $5.00 for each sweatshirt sold and direct labor for embroidering would be $4.00 per sweatshirt. What level of unit sales is needed to attain a target profit of $7,500 for 3 months, approximately?

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