Hairstuff 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 Hairstuff 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 Hairstuff Company sells total 20,000 headbands?