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steven garcia operates a kiosk in downtown chicago, at which he sells one style of baseball hat. He buys the hats from a supplier for
steven garcia 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. Stevens current breakeven point in 15,000 hats per year.
assume that stevens fixed costs, variable costs, and sales price were the same last year, when he made $31,500 in net income. How many hats did steven 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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