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
Related questions
Question
![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?
18,000
22,000
26,000
28,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe9045e4c-214a-4ed5-8350-6a40e5f22583%2F2706d288-2c2a-4fb5-9d8c-e87c55f36259%2Fk9n12g_processed.png&w=3840&q=75)
Transcribed Image Text: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?
18,000
22,000
26,000
28,000
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
Concept
In this question first we will calculate the pairs of jeans that will be required to be sold at $ 29.99 to earn profit of $ 100,000. Hence to earn profits above $ 100,000, we have to sell pairs of jeans more than the pairs required to earn profits of $ 100,000.
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![Essentials Of Investments](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781260013924/9781260013924_smallCoverImage.jpg)
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
![FUNDAMENTALS OF CORPORATE FINANCE](https://www.bartleby.com/isbn_cover_images/9781260013962/9781260013962_smallCoverImage.gif)
![Financial Management: Theory & Practice](https://www.bartleby.com/isbn_cover_images/9781337909730/9781337909730_smallCoverImage.gif)
![Essentials Of Investments](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781260013924/9781260013924_smallCoverImage.jpg)
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
![FUNDAMENTALS OF CORPORATE FINANCE](https://www.bartleby.com/isbn_cover_images/9781260013962/9781260013962_smallCoverImage.gif)
![Financial Management: Theory & Practice](https://www.bartleby.com/isbn_cover_images/9781337909730/9781337909730_smallCoverImage.gif)
![Foundations Of Finance](https://www.bartleby.com/isbn_cover_images/9780134897264/9780134897264_smallCoverImage.gif)
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
![Fundamentals of Financial Management (MindTap Cou…](https://www.bartleby.com/isbn_cover_images/9781337395250/9781337395250_smallCoverImage.gif)
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
![Corporate Finance (The Mcgraw-hill/Irwin Series i…](https://www.bartleby.com/isbn_cover_images/9780077861759/9780077861759_smallCoverImage.gif)
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education