Adam Granger operates a kiosk in downtown Chicago, at which he sells one style of baseball hat. He buys the hats from a supplier for $16 and sells them for $22. Adams current breakeven point is 20,250 hats per year.

Assume that Adams fixed costs, variable costs, and sales price were the same last year, when he made $28,350 in net income. How many hats did Adam sell last year, assuming a 30% income tax rate? (correct answer is 27,700 - already figured out that step)

What was Adams margin of safety last year? Margin of Safety $_____

If Adam wants to earn $51,030 in net income, how many hats must he sell, assuming a 30% tax rate? # of Hats: _____

How many hats must Adam sell to break even if his supplier raises the price of the hats to $17 per hat? # of Hats: _____

Adam has decided to increase his sales price to $23 to offset the suppliers price increase. He believes that the increase will result in a 5% reduction from last years sales volume. What is Adams expected net income, assuming a 30% tax rate? Net Income: $_______