Required: 1. What level of unit sales and dollar sales is needed to attain a target profit of $10,500? 2. Assume that Hooper places an initial order for 175 sweatshirts. What is his break-even point in unit sales and dollar sales? (Round your intermediate calculations, round "Break-even point in unit sales" up to the nearest whole unit and round "Break-even point in dollar sales" to the nearest whole dollar.) 3. How many sweatshirts would Hooper need to sell to earn a target profit of $11,812? (Round final answer up to the nearest whole unit.)
Required: 1. What level of unit sales and dollar sales is needed to attain a target profit of $10,500? 2. Assume that Hooper places an initial order for 175 sweatshirts. What is his break-even point in unit sales and dollar sales? (Round your intermediate calculations, round "Break-even point in unit sales" up to the nearest whole unit and round "Break-even point in dollar sales" to the nearest whole dollar.) 3. How many sweatshirts would Hooper need to sell to earn a target profit of $11,812? (Round final answer up to the nearest whole unit.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please help me solve all the requirements of the question
Transcribed Image Text:Required:
1. What level of unit sales and dollar sales
is needed to attain a target profit of
$10,500?
2. Assume that Hooper places an initial
order for 175 sweatshirts. What is his
break-even point in unit sales and dollar
sales? (Round your intermediate
calculations, round "Break-even point in
unit sales" up to the nearest whole unit
and round "Break-even point in dollar
sales" to the nearest whole dollar.)
3. How many sweatshirts would Hooper
need to sell to earn a target profit of
$11,812? (Round final answer up to the
nearest whole unit.)
Transcribed Image Text:The Shirt Works sells a large variety of tee
shirts and sweatshirts. Steve Hooper, the
owner, is thinking of expanding his sales
by hiring high school students, on a
commission basis, to sell sweatshirts
bearing the name and mascot of the local
high school.
These sweatshirts would have to be
ordered from the manufacturer six weeks
in advance, and they could not be
returned because of the unique printing
required. The sweatshirts would cost
Hooper $20.00 each with a minimum
order of 175 sweatshirts. Any additional
sweatshirts would have to be ordered in
increments of 175.
Since Hooper's plan would not require
any additional facilities, the only costs
associated with the project would be the
costs of the sweatshirts and the costs of
the sales commissions. The selling price
of the sweatshirts would be $40.00 each.
Hooper would pay the students a
commission of $5.00 for each shirt sold.
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