Question 1. Assume you own a soft goods company that prints logo sportswear (hats, tees, sweatshirts, etc.) for college teams.

Question

1. Assume you own a soft goods company that prints logo sportswear (hats, tees, sweatshirts, etc.) for college teams. The fixed costs (FC) for the two-month period preceding the NCAA Football Tournaments (Championship) are $75,000 and the variable cost (VC) for logo, hooded sweatshirts is $35.00 per sweatshirt. What would be the break-even price (pg. 295) for the production of 50,000 sweatshirts? For 80,000 sweatshirts? Show diagram of break even. Below draw a break-even analysis chart.

2. If, in the above example, you produce 80,000 sweatshirts for Oregon and set the wholesale price at $6.25 above the break-even price, how much will you charge per sweatshirt?a. Collegiate Licensing will give the UO athletics a 12% royalty fee for each sweatshirt sold. If the university sell all 80,000 sweatshirts the UO will make?

3. Now the retailer wants to mark-up (pg. 297) the price of the shirt by 33% what would each sweatshirt cost the consumer?