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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?%.
Problem 1. How many jeans must Just for You sell in order to break? even?
When a company has inventory which is subject to gradually increasing prices, the use of the LIFO method of valuing inventory will result in the:
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