Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Chris Anderson operates a kiosk in downtown Chicago, at which he sells one style of baseball hat. He buys the hats from a supplier for

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Chris Anderson operates a kiosk in downtown Chicago, at which he sells one style of baseball hat. He buys the hats from a supplier for $15 and sells them for $ 20. Chris's current breakeven point is 16,200 hats per year, (a 1) Your answer is correct Calculate contribution margin per unit Contribution margin per unit What is Chris's current level of fixed costs? (Use the rounded contribution margin per unit calculated in the previous part) Current level of fixed costs S 81000 Assume that Chris's fixed costs, variable costs, and sales price were the same last year, when he made $ 28,700 in net income How many hats did Chris sell last year, assuming a 30% income tax rate? (Use the rounded contribution margin per unit calculated is the previous part) 24400 hats (c) Your answer is correct. What was Chris's margin of safety in units and dollars last year? Margithof safety in units 8200 hats Margin of safety in dollars 164000 of used (d) If Chris wants to earn $37.100 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) hats

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Concepts And Applications

Authors: W. Steve Albrecht, James D. Stice, Earl K. Stice, Monte R. Swain

10th Edition

0324376154, 978-0324376159

More Books

Students also viewed these Accounting questions

Question

Rework Problem 31 for a room temperature of 35 o C.

Answered: 1 week ago