In: Accounting

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 $21.00 each with a minimum order of 240 sweatshirts. Any additional sweatshirts would have to be ordered in increments of 240.

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 $42.00 each. Hooper would pay the students a commission of $7.00 for each shirt sold.

How many sweatshirts would Hooper need to sell to earn a target profit of $15,100?

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 $23.00 each with a minimum...

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 $23.00
each with a minimum...

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 $24.00
each with a minimum...

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 $22.00
each with a minimum...

Question text
Glory Shirts Co. sells
shirts wholesale to major retailers across Europe. Each shirt has a
selling price of $80 with $56 in variable costs of goods sold. The
company has fixed manufacturing costs of $1,700,000 and fixed
marketing costs of $550,000. Sales commissions are paid to the
wholesale sales reps at 10% of revenues. The company has an income
tax rate of 30%.
Required:
1.
How many shirts must Glory sell in order to break even?
2. ...

Assume that ABC Co. sells T-shirts for $20/ shirt. The marginal
cost of production is $9/ shirt, and fixed costs are $1,500/ year.
The tax rate is 20%. What is the new break-even point of the number
of T-shirts required to be sold if sales price and fixed costs are
both reduced by 15%.
Select one: a. None of the above
b. 187
c. 159
Question 2 Question text XYZ Co. intends to expand operations
and enters into a 10...

Dream Threads Company sells hand−sewn shirts for $40 per shirt.
It incurs monthly fixed costs of $8,000. The contribution margin
ratio is calculated to be 40%.
What is the breakeven point in units? (Round your answer up to
the nearest whole unit.)
A. 500 units
B. 3,200 units
C. 200 units
D. 100 units
2)
Alpine Productions uses a standard cost system for recording
transactions. Alpine reported the following data for the year ended
December 31: Sales revenues: $650,000
Cost...

A department store sells sport shirts in three sizes (small,
medium, and large), three patterns (plaid, print, and stripe), and
two sleeve lengths (long and short). The accompanying tables give
the proportions of shirts sold in the various category
combinations.
Short-sleeved
Pattern
Size
Pl
Pr
St
S
0.04
0.02
0.05
M
0.08
0.05
0.12
L
0.03
0.07
0.08
Long-sleeved
Pattern
Size
Pl
Pr
St
S
0.03
0.02
0.03
M
0.06
0.11
0.07
L
0.04
0.02
0.08
(a) What is the...

A department store sells sport shirts in three sizes (small,
medium, and large), three patterns (plaid, print, and stripe), and
two sleeve lengths (long and short). The accompanying tables give
the proportions of shirts sold in the various category
combinations.
Short-sleeved
Pattern
Size
Pl
Pr
St
S
0.04
0.02
0.05
M
0.09
0.05
0.12
L
0.03
0.07
0.08
Long-sleeved
Pattern
Size
Pl
Pr
St
S
0.03
0.02
0.03
M
0.08
0.08
0.07
L
0.04
0.02
0.08
(a) What is the...

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