How many jeans must the company sell in order to reach A target operating income of$520,000? A net income of$520,000? How many jeans would Perfect Fit have to sell to earn the net income in requirement above if (Consider each requirement independently.) The contribution margin per unit increases by 20% The selling price is increased to $52.00. The company outsources manufacturing to an overseas company, increasing variable costs per unit by $3.00 and saving 70% of fixed manufacturing costs.
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Perfect Fit Jeans Co. sells blue jeans wholesale to major retailers across the country. Each pair of jeans has a selling price of 50 with 40 in variable costs of goods sold. The company has fixed
| How many jeans must Perfect Fit sell in order to break even? | |
| How many jeans must the company sell in order to reach | |
| A target operating income of$520,000? | |
A net income of$520,000? |
|
| How many jeans would Perfect Fit have to sell to earn the net income in requirement above if (Consider each requirement independently.) | |
| The contribution margin per unit increases by 20% | |
| The selling price is increased to $52.00. | |
| The company outsources manufacturing to an overseas company, increasing variable costs per unit by $3.00 and saving 70% of fixed manufacturing costs. |
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- Perfect Fit Jeans Co. sells blue jeans wholesale to major retailers across the country. Each pair of jeans has a selling price of $50 with $35 in variable costs of goods sold. The company has fixed manufacturing costs of $2,250,000 and fixed marketing costs of $250,000. Sales commissions are paid to the wholesale sales reps at 10% of revenues. The company has an income tax rate of 20%. Q1. How many jeans must Perfect Fit sell in order to break even? Q2. How many jeans must the company sell in order to reach: a. a target operating income of $420,000? b. a net income of $420,000? Q3. How many jeans would Perfect Fit have to sell to earn the net income in requirement 2b if: (Consider each requirement independently.) a. the contribution margin per unit increases by 10%. b. the selling price is increased to $51.50. c. the company outsources manufacturing to an overseas company increasing variable costs per unit by $2.00 and saving 70% of fixed manufacturing costs.Just for You Jeans Co. sells blue jeans wholesale to major retailers across the country. Each pair of jeans has a selling price of $40 with $31 in variable costs of goods sold. The company has fixed manufacturing costs of $1,100,000 and fixed marketing costs of $300,000. Sales commissions are paid to the wholesale sales reps at 5% of revenues. The company has an income tax rate of 20%. Read the requirements LOADING... . Requirement 1. How many jeans must Just for You sell in order to break even? Select the formula labels, enter the amounts and calculate the breakeven number of pair of jeans. Fixed costs ÷ Contribution margin per unit = Breakeven number of units $1,400,000 ÷ $7.00 = 200,000 Requirement 2a. How many jeans must the company sell in order to reach a target operating income of $500,000? Select the formula labels, enter the amounts and calculate the number of jeans required to be sold to reach a target operating…Right Fit Jeans Co. sells blue jeans wholesale to major retailers across the country. Each pair of jeans has a selling price of $40 with $30 in variable costs. The company has fixed manufacturing costs of $1,050,000 and fixed marketing costs of $150,000. Sales commissions are paid to the wholesale sales reps at 10% of revenues. The company has an income tax rate of 20%. For each question below, show your computations A net income of $300,000 taking taxes into consideration? How many jeans would Right Fit have to sell to earn the net income in requirement 2b if (Consider each requirement independently.) The contribution margin per unit increases by 20%.
- Right Fit Jeans Co. sells blue jeans wholesale to major retailers across the country. Each pair of jeans has a selling price of $40 with $30 in variable costs. The company has fixed manufacturing costs of $1,050,000 and fixed marketing costs of $150,000. Sales commissions are paid to the wholesale sales reps at 10% of revenues. The company has an income tax rate of 20%. For each question below, show your computations. Ignoring income tax, how many jeans must Right Fit sell in order to break even? How many jeans must the company sell in order to reach A target operating income of $300,000 ignoring taxes? A net income of $300,000 taking taxes into consideration? How many jeans would Right Fit have to sell to earn the net income in requirement 2b if (Consider each requirement independently.) The contribution margin per unit increases by 20%. The selling price is increased to $45. The company outsources manufacturing to an overseas company, increasing variable costs per unit by $1.00 and…Night Shades Inc. (NSI) manufacturers biotech sunglasses. These sunglasses sell for $150 each, and cost $70 each to produce. Night Shades Inc. has fixed costs of $100,000.a. Calculate Night Shades' Breakeven point.b. how much profit (loss) will Night Shades have if it sells 500 sunglasses? 4,000 sunglasses?c. Night Shades' manager expects an operation profit of $200,000. How many sunglasses must be sold to attain this profit?Night Shades Inc. (NSI) manufactures biotech sunglasses. These sunglasses sell for $150 each, and cost $70 each to produce. Night Shades Inc. has fixed costs of $100,000. a. Calculate Night Shades’ Breakeven point. b. how much profit (loss) will Night Shades have if it sells 500 sunglasses? 4,000 sunglasses? c. Night Shades’ manager expects an operating profit of $200,000. How many sunglasses must be sold to attain this profit?
- Coney Adventures Inc. sells one product for $5. The variable cost per item is $3, and the fixed costs for the firm are $40. Assume that Redlands currently sells 40 units. Redlands estimates that if it increased sales price to $6 per unit demand would decrease by 10%. Determine if Redlands should increase its selling price. (Ignore income taxes.) Assume that Redlands currently sells 30 units and has a 40% income tax rate. The firm estimates that a $25 increase in fixed cost from automating the plant would lower variable costs to $2 per unit. Determine if Redlands should change its cost structure.2CVP analysis, sensitivity analysis. Perfect Fit Jeans Co. sells blue jeans wholesale to major retailers across the country. Each pair of jeans has a selling price of $50 with $35 in variable costs of goods sold. The company has fixed manufacturing costs of $2,250,000 and fixed marketing costs of $250,000. Sales commis- sions are paid to the wholesale sales reps at 10% of revenues. The company has an income tax rate of 20% 1. How many jeans must Perfect Fit sell in order to break even? How many jeans must the company sell in order to reach: a target operating income of $420,000? b. a net income of $420,000? 2. .219 inu ni niog neveleend 0.8s- a. S W Sbas 3. How many jeans would Perfect Fit have to sell to earn the net income in requirement 2b if: (Consider odworl2 21 each requirement independently.) the contribution margin per unit increases by 10% b. the selling price is increased to $51.50. c. the company outsources manufacturing to an overseas company increasing variable costs per…Redlands Inc. sells one product for $5. The variable cost per item is $3, and the fixed costs for the firm are $40. f. Assume that Redlands currently sells 40 units. Redlands estimates that if it increased sales price to $6 per unit demand would decrease by 10%. Determine if Redlands should increase its selling price. (Ignore income taxes.) g. Assume that Redlands currently sells 30 units and has a 40% income tax rate. The firm estimates that a $25 increase in fixed cost from automating the plant would lower variable costs to $2 per unit. Determine if Redlands should change its cost structure. f. Current Alternative Sales revenue Variable cost Contribution margin Fixed cost Net income g. Current Alternative Sales revenue Variable cost Contribution margin Fixed cost Pretax income Income tax expense Net income
- UrTurn sells its products at P80 per unit with the unit variable cost of P55. Its fixed cost is P81,000. How many units must be sold to achieve the following (tax rate is at 40%) Suppose that its target pre-tax income is P50,000. The company is presently selling 5,000 units. To increase sales, the management is considering an advertising program that will cost P13,000. The management estimates that this will increase sales 500 units. What should be the minimum increase in sales (in units) so that the company could really consider advertising the product.The Oregano Watch Company manufactures a line of ladies’ watches which are sold through discount houses. Each watch is sold for P1,500; the fixed costs are P3,600,000 for 30,000 watches or less; variable cost is P900 per watch. What is Oregano’s margin of safety ratio at sales of 12,000 watches?Pimpton Plows sells its product for $50. Its variable cost per unit is $19.00. Fixed costs total $434,000.How many units does the company need to sell to breakeven?What are the total sales in dollars at the breakeven point?How many units does the company need to sell to earn a profit of $155,000?