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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

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?  use 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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a To find the monthly breakeven point in headbands we need to calculate the total contribution margin per headband and then divide the total fixed cos... blur-text-image

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