Sporting Caps Co. produces and sells sporting caps for different sports activities. The fixed costs of operating the company are estimated at $150,000 per month, and the variable costs for caps are $5 per unit. The caps are sold at $8 per unit. The relevant range of operations is from 0 to 100,000 caps per month. Required 1. Use formulae to compute the following: a. Contribution margin per cap. b. Break-even point in terms of the number of caps sold. c. Amount of profit at 30,000 caps sold per month (ignore income taxes). d. Amount of profit at 85,000 caps sold per month (ignore income taxes). e. Quantity of caps to be produced and sold to provide $45,000 of after-tax profits, assuming an income tax rate of 25%. 2. Draw a CVP chart for the company, showing cap sales on the horizontal axis. Identify the break-even point and the amount of pre-tax profit when the level of cap production is 75,000. (Omit the fixed cost line.) Activate Wild