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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 \$40 with \$30

Just for You Jeans Co. sells blue jeans wholesale to major retailers across the country. Each pair of jeans has a selling price of \$40 with \$30 in variable costs of goods sold. The company has fixed manufacturing costs o
and fixed marketing costs of \$150,000. Sales commissions are paid to the wholesale sales reps at 10% of revenues. The company has an income tax rate of 20%.
Requirement 1. How many jeans must Just for You sell in order to break even?
Select the formula labels, enter the amounts and calculate the breakeven number of pair of jeans.
Fixed costs
Contribution margin per unit
Breakeven number of units
\$
1,200,000
\$
6.00
200,000
Requirement 2a. How many jeans must the company sell in order to reach a target operating income of \$400,000?
Select the formula labels, enter the amounts and calculate the number of jeans required to be sold to reach a target operating income of \$400,000. (Round your answer up to the nearest whole unit.)
Quantity of units
required to be sold