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The Shirt Works sells a large vanety 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 order of 242 sweatshirts. Any additional sweatshirts would have to be ordered in increments of 242 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 $44.00 each. Hooper would pay the students a commission of $6.00 for each shirt sold Required: 1 What level of unit sales and doller sales is needed to attain a target profit of $15.4887 2. Assume that Hooper places an initial order for 242 sweatshirts What is his break-even point in unit sales and dollar sales? Note: 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 $17.424? Note: Round final answer up to the nearest whole unit. Unt sales needed to attain the target profit 1 Dolar sales needed to atten the target proft 2 Break even point i unit sales 2 Beak even pont in dollar sales 3. Number of sweatshirts sweatshirts sweatshirts sweatshirts

The Shirt Works sells a large vanety 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 order of 242 sweatshirts. Any additional sweatshirts would have to be ordered in increments of 242 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 $44.00 each. Hooper would pay the students a commission of $6.00 for each shirt sold Required: 1 What level of unit sales and doller sales is needed to attain a target profit of $15.4887 2. Assume that Hooper places an initial order for 242 sweatshirts What is his break-even point in unit sales and dollar sales? Note: 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 $17.424? Note: Round final answer up to the nearest whole unit. Unt sales needed to attain the target profit 1 Dolar sales needed to atten the target proft 2 Break even point i unit sales 2 Beak even pont in dollar sales 3. Number of sweatshirts sweatshirts sweatshirts sweatshirts

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 1EA: Garrison Boutique, a small novelty store, just spent $4,000 on a new software program that will help...
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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 order of 242 sweatshirts Any additional sweatshirts would have to be ordered in increments of 242 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 $44.00 each. Hooper would pay the students a commission of $6.00 for each shirt sold Required: 1 What level of unit sales and dollar sales is needed to attain a target profit of $15.4887 2. Assume that Hooper places an initial order for 242 sweatshirts. What is his break-even point in unit sales and dollar sales? Note: 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 $17,424? Note: Round final answer up to the nearest whole unit. 1. Unit sales needed to attain the target profit 1. Dolar sales needed to attain the target profit 2. Break even point in unit sales 2 Beak even point in dollar sales 3. Number of sweatshirts sweatshirts sweatshirts sweatshirts
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 $22.00 each with a minimum order of 242 sweatshirts Any additional sweatshirts would have to be ordered in increments of 242 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 $44.00 each. Hooper would pay the students a commission of $6.00 for each shirt sold Required: 1 What level of unit sales and dollar sales is needed to attain a target profit of $15.4887 2. Assume that Hooper places an initial order for 242 sweatshirts. What is his break-even point in unit sales and dollar sales? Note: 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 $17,424? Note: Round final answer up to the nearest whole unit. 1. Unit sales needed to attain the target profit 1. Dolar sales needed to attain the target profit 2. Break even point in unit sales 2 Beak even point in dollar sales 3. Number of sweatshirts sweatshirts sweatshirts sweatshirts
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