Answer this accounting question Fashion Headwear, Ltd. operates a chain of exclusive skihat boutiques in the western United States. The storespurchase several hat styles from a single distributor at $27each. All other costs incurred by the company are fixed.Fashion Headwear, Ltd. sells hats for $45 each.1. If fixed costs total $257,220 per year, what is the break-even point in sales units and in sales dollars?2. What is Fashion Headwear's contribution margin ratioand variable cost ratio?

Step 1: Define CVP AnalysisCVP (Cost - Volume - Profit) analysis looks at the way costs behave and…

Answered: Fashion Headwear, Ltd. operates a chain…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter10: Decentralization: Responsibility Accounting, Performance Evaluation, And Transfer Pricing

Section: Chapter Questions

Problem 14E

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Wildhorse Cash, Ltd. operates a chain of exclusive ski hat boutiques in the western United States. The stores purchase several hat styles from a single distributor at $13 each. All other costs incurred by the company are fixed. Wildhorse Cash, Ltd. sells the hats for $49 each. (a) If fixed costs total $630,000 per year, what is the breakeven point in units? In sales dollars? (Use your answer of breakeven units to calculate the breakeven point in dollars.) The breakeven point hats The breakeven sales $
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