Great Fit Jeans Co. sells blue jeans wholesale to major retailers across the country. Each pair of jeans has a selling price of $45 with $25 in variable costs of goods sold. The company has fixed manufacturing costs of $3,145,000 and fixed marketing costs of $420,000. Sales commissions are paid to the wholesale sales reps at 10% of revenues. The company has an income tax rate of 20%.
a) Cost analysis for Great Fit Jeans Co.
b) Pricing strategy for blue jeans
c) Financial performance evaluation
d) None of the above