Contribution margin per unit = $5Current 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 unitcalculated 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.

The Break-even point is the level of sales where total fixed cost and variable cost are equal. It is…

Answered: Assume that William's fixed costs,…

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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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