CM/unit = $6

Current level of fixed cost = $154,800

Assume that Adams fixed costs, variable costs, and sales price were the same last year, when he made $36,120 in net income. How many hats did Adam sell last year, assuming a 30% income tax rate?

34400 hats

Question 3 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 $22 and sells them for $28. Adam's current breakeven point is 25,800 hats per year. (a1) (a2) (b) (c) What was Adam's margin of safety last year? Margin of safety $ Click if you would like to Show Work for this question: Open Show Work