Homework 1-7.docx

# Required to be sold 1995000 400000 950 252105

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required to be sold ( \$1,995,000 + \$400,000 ) / \$9.50 = 252,105 Requirement 2b. How many jeans must the company sell in order to reach a net income of \$ 400 comma 000\$400,000? Now, select the formula labels, enter the amounts and calculate the number of jeans required to be sold to reach net income of \$ 400 comma 000\$400,000. (Round your answer up to the nearest whole unit.) Quantity of units ( Fixed costs + Target operating income ) / Contribution margin per unit = required to be sold ( \$1,995,000 + \$500,000 ) / \$9.50 = 262,632 Requirement 3a. How many jeans would BlueBlue have to sell to earn the net income in part 2b if the contribution margin per unit increases by 1212%. Select the formula labels, enter the amounts and calculate the number of jeans required to earn the net income in part 2b if the contribution margin per unit increases by 1212%. (Round your answer up to the nearest whole unit.) Quantity of units ( Fixed costs + Target operating income ) / Contribution margin per unit = required to be sold ( \$1,995,000 + \$500,000 ) / \$10.64 = 234,492 Requirement 3b. How many jeans would BlueBlue have to sell to earn the net income in part 2b if the selling price is increased to \$56.0056.00. Select the formula labels, enter the amounts and calculate the pair of jeans required to earn the net income in part 2b if the selling price is increased to

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\$56.0056.00.
• Spring '09
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