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 $36 and sells them for $42. Adams current breakeven point is 33,600 hats per year. 1. Calculate contribution margin per unit. 2. What is Adams current level of fixed costs? (Use the rounded contribution margin per unit calculated in the previous part.) 3. Assume that Adams fixed costs, variable costs, and sales price were the same last year, when he made $47,040 in net income. How many hats did Adam sell last year, assuming a 30% income tax rate? (Use the rounded contribution margin per unit calculated in the previous part.) 4. What was Adams margin of safety last year? 5. f Adam wants to earn $84,672 in net income, how many hats must he sell, assuming a 30% tax rate? (Use the rounded contribution margin per unit calculated in the previous part.) 6. How many hats must Adam sell to break even if his supplier raises the price of the hats to $37 per hat? (Use the rounded contribution margin per unit for computation.) 7. Adam has decided to increase his sales price to $43 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?