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4. If the company decides to sell only option 1 and can reduce the fixed costs by 20%, how many hats to they need to

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4. If the company decides to sell only option 1 and can reduce the fixed costs by 20%, how many hats to they need to sell to break even? 5. If the company decides to sell only option 2 but must increase the sales commissions on each to $ 6.30 , how many hats do they need to sell to break even? 6. If the company decides to sell only option 3 but their maximum capacity is 100,000 hats, how much should they sell their hats for to break even? 7. Based on 6 above, how much do they need to sell the hats for it they have a desired profit level of $40,500 ? 1. Richie Company makes baseball caps. Their caps come in different colors and have other optional features such as ear flaps, sun visors, and elastic back straps. The company wishes to do an analysis of the cost/volume/profit levels based on several hat options. Based on the Cost-Volume-Profit Analytical process discussed in class, answer the questions below. Option 1. The "Everything Cap" includes all of the optional features with the costs listed below: Selling Price: $32 each Cap Exterior $ 5,60 each Cap Lining $ 1.12 each Ear Flaps S 2.03 each Sun Visors S 1.70 each Elastic Straps $ 0.79 each: Option 2...The "Middle Man" includes several optional features with the costs listed below: Selling Price: $25 Cap Exterior $ 5.60 each Cap Lining $ 1.12 each Sun Visors S 1.70 each Elastic Straps S 0.79 each Option 3. The "Baseline" includes only one optional feature with the costs listed below: Selling Price: $18 Cap Exterior $ 5.60 each Cap Lining $ 1.12 each Elastic Straps $ 0.79 each Additional Information: Production Salaries: $ Factory Rent $ Sales Salaries S Packaging $ Sales Commissions $ 78,000 60,000 115,000 2.68 each 5.00 each

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