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Sporting Caps Co. produces and sells sporting caps for different sports activities. The fixed costs of operating the company are estimated at 50 842 $
Sporting Caps Co. produces and sells sporting caps for different sports activities. The fixed costs of operating the company are estimated at 50 842 $ per month, and the variable costs for caps are 5.21 $ per unit. The caps are sold at 8.23 $ per unit. The relevant range of operations is from 0 to 100 000 caps per month 2. Compute the following: a. Contribution margin ratio b. Break-even point in terms of sales dollars c. Amount of Net income at 130 000 $ of sales per month (ignore income tax rate) d. Amount of Net income at 140 000 $ of sales per month (ignore income tax rate) e Dollars of sales needed to provide 975 000 $ of after-tax income, assuming an income tax rate of 21%
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