Assume that a company sells customized sweatshirts for $15 per unit. It pays a sales commission...

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Assume that a company sells customized sweatshirts for $15 per unit. It pays a sales commission of $5 per unit sold. The comp

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Answer 1

Answer #1

600 Sweatshirts is the correct answer.

Let Say to earn target profit of $1680, required sale of units are X.

Then equation to earn target profit of $1680 is:

X (15-7-5) = 1680

3X =1680

X=560

However, Units are purchased in multiple of 100 Units to avail the price of $7 per unit.

Therfore, required units are 600 to earn the target profit of $1680.

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Answer 2

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