Mark Harris operates a kiosk in downtown Chicago, at which he sells one style of baseball hat. He buys the hats from a supplier for $39 and sells them for $45. Mark’s current breakeven point is 31,500 hats per year. contribution margin per unit: 6 current level of fixed costs: 189000 Assume that Mark’s fixed costs, variable costs, and sales price were the same last year, when he made $44,100 in net income. How many hats did Mark sell last year, assuming a 30% income tax rate? (Use the rounded contribution margin per unit calculated in the previous part.)
Mark Harris operates a kiosk in downtown Chicago, at which he sells one style of baseball hat. He buys the hats from a supplier for $39 and sells them for $45. Mark’s current breakeven point is 31,500 hats per year. contribution margin per unit: 6 current level of fixed costs: 189000 Assume that Mark’s fixed costs, variable costs, and sales price were the same last year, when he made $44,100 in net income. How many hats did Mark sell last year, assuming a 30% income tax rate? (Use the rounded contribution margin per unit calculated in the previous part.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Mark Harris operates a kiosk in downtown Chicago, at which he sells one style of baseball hat. He buys the hats from a supplier for $39 and sells them for $45. Mark’s current breakeven point is 31,500 hats per year.
contribution margin per unit: 6
current level of fixed costs: 189000
Assume that Mark’s fixed costs, variable costs, and sales price were the same last year, when he made $44,100 in net income. How many hats did Mark sell last year, assuming a 30% income tax rate? (Use the rounded contribution margin per unit calculated in the previous part.)
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