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Joseph Moore operates a kiosk in downtown Chicago, at which he sells one style of baseball hat. He buys the hats from a supplier for
Joseph Moore operates a kiosk in downtown Chicago, at which he sells one style of baseball hat. He buys the hats from a supplier for $ 20 and sells them for $ 25. Joseph's current breakeven point is 16,000 hats per year. Assume that Joseph's fixed costs, variable costs, and sales price were the same last year, when he made $ 27,300 in net income. How many hats did Joseph sell last year, assuming a 30% income tax rate? (Use the rounded contribution margin per unit calculated in the previous part.) hats
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