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Assume that William's fixed costs, variable costs, and sales price were the same last year, when he made $ 24,500 in net income. How many hats did William sell last year, assuming a 30% income tax rate? (Use the rounded contribution margin per unit calculated in the previous part.) hats

Assume that William's fixed costs, variable costs, and sales price were the same last year, when he made $ 24,500 in net income. How many hats did William sell last year, assuming a 30% income tax rate? (Use the rounded contribution margin per unit calculated in the previous part.) hats

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Contribution margin per unit = $5

Current level of fixed costs = $85000

Assume that William's fixed costs, variable costs, and sales price were the same last year, when he made $ 24,500 in net income. How many hats did William sell last year, assuming a 30% income tax rate? (Use the rounded contribution margin per unit calculated in the previous part.) hats
Transcribed Image Text:Assume that William's fixed costs, variable costs, and sales price were the same last year, when he made $ 24,500 in net income. How many hats did William sell last year, assuming a 30% income tax rate? (Use the rounded contribution margin per unit calculated in the previous part.) hats
William Brown operates a kiosk in downtown Chicago, at which he sells one style of baseball hat. He buys the hats from a supplier for $ 20 and sells them for $ 25. William's current breakeven point is 17,000 hats per year.
Transcribed Image Text:William Brown operates a kiosk in downtown Chicago, at which he sells one style of baseball hat. He buys the hats from a supplier for $ 20 and sells them for $ 25. William's current breakeven point is 17,000 hats per year.
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