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Hairdecor Company sells decorative headbands to retailers for $ 7 . 5 0 . The variable cost of goods sold per headband is $ 1

Hairdecor Company sells decorative headbands to retailers for $7.50. The variable cost of goods sold per headband is $1.50, with a selling commission of 15 percent. Fixed manufacturing costs total $37,500 per month, while monthly fixed selling and administrative costs total $15,750. The income tax rate for Hairdecor Company is 25 percent. Use 3 decimal places in calculations.
Required:
a. What is the monthly breakeven point in headbands?
b. What are target sales in headbands to generate a monthly before tax income of $20,000?
c. What are target sales in headbands to generate an after tax income of $22,500?
d. What is net income assuming Hairdecor Company sells total 20,000 headbands?

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