Question
Exercise D3-1 Crane Cash, Ltd. operates a chain of exclusive ski hat boutiques in the western United States. The stores purchase several hat styles from
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 $12each. All other costs incurred by the company are fixed. Crane Cash, Ltd. sells the hats for $35each.
If fixed costs total $414,000per year, what is the breakeven point in units? In sales dollars?(Use your answer of breakeven units to calculate the breakeven point in dollars.)
The breakeven point hats
The breakeven sales. $
What is Crane Cash's contribution margin ratio? Its variable cost ratio?(Round ratios to 2 decimal places, e.g. 0.38.)
Contribution margin ratio :1
Variable cost ratio :1
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