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Question - Just for You Jeans Co. sells blue jeans wholesale to major retailers across the country. Each pair of jeans has a selling price of $35 with $25 in variable costs of goods sold. The company has fixed manufacturing costs of $1,175,000 and fixed marketing costs of $450,000. Sales commissions are paid to the wholesale sales reps at 10?% of revenues. The company has an income tax rate of 20?%. How many jeans must Just for You sell in order to break even?
It should be noted that included in the above costs incurred to date were standard electrical and mechanical materials stored on the job site, but not yet installed, costing $105,000. These costs should not be considered in the costs incurred to d..
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