Crane Cash, Ltd. operates a chain of exclusive ski hat boutiques in the western United States. The stores purchase several hat styles from a single distributor at $16 each. All other costs incurred by the company are fixed. Crane Cash, Ltd. sells the hats for $37 each.

A. If fixed costs total $420,000 per year, what is the breakeven point in units? In sales dollars?

The breakeven point is _____ Hats

The breakeven sales is $______

b. What is Crane Cashs contribution margin ratio? Its variable cost ratio?

Contribution Margin Ration ___ %

Variable Cost Ratio __%