E Question Help * Perfect Fit Jeans Co. sells blue jeans wholesale to major reta

Question

E Question Help * 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 varlable costs of goods sold. The company has fixed manufacturing costs of S2250,000 and fixed marketing costs of S250000 Sales commissins we pad to he wholesale saseps at 10% of revenues. The company has an income tax rate of 20%. ss Read the requirements. Requirement 1. How many jeans must Perfect Fit 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 correct:

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Amount Fixed manufacturing costs       2,250,000.00 Fixed marketing costs           250,000.00 Total fixed costs       2,500,000.00 Sales price per unit                      50.00 Less Variable costs per unit: Variable costof goods sold                      35.00 Sales commissions                        5.00 Total variable cost per unit                      40.00 Contribution per unit = 50 - 40                      10.00 Fixed costs / Contribution per unit = Breakeven number of units 2,500,000/10 = Breakeven number of units Breakeven number of units = 250,000

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