# Question & Answer: The Shirt Works sells a large variety of tee shirts and sweatshirts. Steve Hooper, the owner, is thinking of expanding high school students,…..

The Shirt Works sells a large variety of tee shirts and sweatshirts. Steve Hooper, the owner, is thinking of expanding high school students, on a commission basis, to sell sweatshirts bearing the name and mascot of the local high These sweatshirts would have to be ordered from the manufacturer six weeks in advance, and they could not the unique printing required. The sweatshirts would cost Hooper \$19.00 each with a minimum order of 280 sweatshirts would have to be ordered in increments of 50. Since Hooper’s plan would not require any additional facilities, the only costs associated with the project would sweatshirts and the costs of the sales commissions. The selling price of the sweatshirts would be \$38.00 each. students a commission of \$6.00 for each shirt sold. Required: 1. What level of unit sales and dollar sales is needed to attain a target profit of \$11,050? 2. Assume that Hooper places an initial order for 280 sweatshirts. What is his breakeven point in unit sales and your intermediate calculations and final answers to the nearest whole number.)