Calculate the number of sweatshirts henry hoodies

Reference no: EM13126180

Henry's Hoodies produces a variety of sweatshirts for college students. Henry's produces sweatshirts in batches and currently produces five batches per year. The company's controller recently implemented an activity-based costing system and would like to calculate break-even sales for the owner under this new costing system. He has prepared the following representative data:

Average Sweatshirt sales price $40.00
Direct materials (per unit) $4.50
Direct labor (per unit) $5.00
Variable overhead (per unit) $0.50
Setup cost (per batch) $2,500
Fixed costs (in total) 42,000

Required
Calculate the number of sweatshirts Henry's Hoodies must sell to break even. Round your answer to the nearest whole number.

Reference no: EM13126180

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