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Kenneth Clark operates a kiosk in downtown Chicago, at which he sells one style of baseball hat. He buys the hats from a supplier for
Kenneth Clark 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. Kenneths current breakeven point is 16,600 hats per year.
Assume that Kenneths fixed costs, variable costs, and sales price were the same last year, when he made $32,900 in net income. How many hats did Kenneth sell last year, assuming a 30% income tax rate? (Use the rounded contribution margin per unit calculated in the previous part.)
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