Question: 1. Jenny's Football Jersey Sales, Inc. estimates variable cost to be 30% of sales, and fixed cost to be $200,000. Each Saints T-Shirt has as selling price of $19.00.
Required: A. Compute the break-even point in units and in dollars.
B. Compute the profit in dollars assuming actual sales are $1, 200,000.
2. Elizabeth Company want its targeted net income to be $250,000 in 2016. The sell price per unit is $176.00 and the variable cost per unit was $85. The fixed cost is $600,000.
Required: (a) Compute the number of units needed to be sold to reach the targeted net income.
(b) Compute the sales revenue needed to reach the targeted net income.