We have been asked to analyze our denim jeans line by price (from $24.99 to $36.99 by $1.00) and quantity (from 10,000 to 28,000 by 2,000). Fixed Cost = $85,470 Material cost per pair = $7.44 Electricity cost per pair = $0.61 Labor cost per pair = $14.88 If we price the jeans at $29.99, how many pairs of jeans must we sell to have profits above $100,000? O 18,000 O 22,000 O 26,000 O 28,000

We have been asked to analyze our denim jeans line by price (from $24.99 to $36.99 by $1.00) and quantity (from 10,000 to 28,000 by 2,000). Fixed Cost = $85,470 Material cost per pair = $7.44 Electricity cost per pair = $0.61 Labor cost per pair = $14.88 If we price the jeans at $29.99, how many pairs of jeans must we sell to have profits above $100,000? O 18,000 O 22,000 O 26,000 O 28,000

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Burke's Corner currently selis blue jeans and T-shirts. Management is considering adding fleece tops to its inventory to provide a cooler weather option. The tops would sell for 547 each with expected sales of 3, 500 tops annually. By adding the fleece tops, management feels the firm will sell an additional 205 pairs of jeans at 557 a pair and 340 fewer T-shirts at $18 each. The variable cost per unit is $25 on the jeans, $9 on the T-shirts, and $21 on the fleece tops. With the new item, the depreciation expense is $27,000 a year and the fixed costs are $62, 000 annually. The tax rate is 21 percent. What is the project's operating cash flow?
Burke's Corner currently sells blue jeans and T-shirts. Management is considering adding fleece tops to its inventory to provide a cooler weather option. The tops would sell for $50 each with expected sales of 3,650 tops annually. By adding the fleece tops, management feels the firm will sell an additional 220 pairs of jeans at $60 a pair and 355 fewer T-shirts at $21 each. The variable cost per unit is $28 on the jeans, $12 on the T-shirts, and $24 on the fleece tops. With the new item, the depreciation expense is $30,000 a year and the fixed costs are $65,000 annually. The tax rate is 21 percent. What is the project's operating cash flow? Multiple Choice O $27,396 $36,689 $32,959 $23,179 $21,673
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Please show your work and formulas used so I can understand clearly . This is average cost practice problem
What is the relevant cost of purchasing from Designer Fabrics and Cannon Cotton?
Casual Threads currently sells blue jeans and T-shirts. Management is considering adding fleece tops to its inventory to provide a cooler weather option. The tops would sell for $49 each with expected sales of 3,600 tops annually. By adding the fleece tops, management feels the firm will sell an additional 220 pairs of jeans at $59 a pair and 350 fewer T-shirts at $18 each. The variable cost per unit is $36 on the jeans, $9 on the T-shirts, and $21 on the fleece tops. With the new item, the depreciation expense is $27,000 a year and the fixed costs are $62,000 annually. The tax rate is 34 percent. What is the project's operating cash flow? a) $27,789 b) $34,708 c) $36,049 d) $38,419
Joey Bag-o-donuts owns an ice cream shop. Looking at last year's utility bills, the highest utility bill was $4000 for 2000 machine hours. The lowest utility bill was $2500 for 1200 machine hours. Calculate the variable rate per machine hour and the total fixed utility cost. Show the equation for determining total utility costs. If Joey plans on using 1500 machine hours, what will the total utility bill be using the equation in part 2.
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