Fashions, Inc

question 45

Essay

Fashions, Inc.is a retail store that sells sweaters and jackets.In the past, it has bought all its sweaters from a supplier for $20 per unit and had no fixed costs for this line of clothing.However, Fashions has the opportunity to acquire a small manufacturing facility where it could produce its own sweaters.The projected data for producing its own sweaters are as follows: Required:
1.If Fashions acquired the manufacturing facility, how many sweaters would it have to produce in order to break even? (Round your answer up, to the nearest whole number.)
2.To earn an after tax profit of $125,000 per month, how many sweaters would Fashions have to sell if it buys the sweaters from the supplier? If it produces its own sweaters? Fashion's combined income tax rate is 30%.(Round your answer up, to the nearest whole number.)
3.What is the profit-indifference sales volume in terms of the two options under consideration? (Ignore income tax effects.) Show a computation of operating income to prove your answer.

Understand the three properties of products and services that influence consumer purchase decisions and provide relevant examples.

Understand the scope and application of warranties in consumer transactions.

Identify the statutory obligations of car dealerships and the rights of consumers under warranty issues.

Recognize the legal principles surrounding statutory warranties and implied terms in the Sale of Goods Act.

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Definitions:

Musculoskeletal Pain

Pain that affects the bones, muscles, ligaments, tendons, and nerves, which can be caused by injury, activity, or certain diseases.

Fatigue

A state of physical or mental exhaustion or weakness, often resulting from stress, lack of sleep, or illness.

Perception of Pain

describes the individual and subjective experience of pain, which varies greatly from person to person and can be influenced by numerous factors both physical and psychological.

Analgesia

The state of being unable to feel pain, often achieved through the use of medications.