a. 1. What are the variable costs per unit for a pair of jeans under...
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a. 1. What are the variable costs per unit for a pair of jeans under the following assumptions: Direct labor: 30 minutes of cutting at $10.00 per hour. One hour of sewing at $11.00 per hour. 10 minutes to pack a carton of jeans (10 to a carton) at $12.00/hour. b. Fabric: A pair of jeans uses 1.2 square yards of fabric which comes in pieces 1.5 of square yards. The extra fabric cannot be used. Each square yard of fabric costs $4.00 per yard. C. Thread: Thread costs $.05/foot, and an average pair of jeans uses one yard of thread. d. Each pair of jeans includes a size label ($.02), and a "pin" ticket (which includes the brand name, and the bar code) that is attached to the jeans. The pin-tickets cost $50/1000. e. The carton costs $3.00. 2. The company sells its jeans for $30. What is the contribution margin $ for each pair of jeans sold? What is the contribution margin % for each pair of jean sold? a. 3. What are the company's annualized fixed costs under the following assumptions? Rent: $8000/month b. Utilities are paid twice a year and each payment is $7000. c. Administrative salaries: $500,000. d. Other fixed costs: $500,000 4. What is the break-even point to cover fixed costs
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