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Sport Caps manufactures and sells caps. Fixed costs are $150,000 per month, and variable costs are $5 per cap. The caps are sold for $8
Sport Caps manufactures and sells caps. Fixed costs are $150,000 per month, and variable costs are $5 per cap. The caps are sold for $8 each. Production capacity is 100,000 caps per month. Required 1. Compute the following. a. Contribution margin per cap. d. Income at 85,000 caps sold. e. Number of caps sold to get $60,000 of income. b. Break-even point in number of caps sold. c. Income at 30,000 caps sold. 2. Compute the following. a. Contribution margin ratio. d. Income at $600,000 of sales. b. Break-even point in sales dollars. e. Dollars of sales to achieve $60,900 of income. c. Income at $250,000 of sales
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