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Warm Hands, a small company based in Prince Edward Island, manufactures and sells two types of lightweight gloves for runners- Warm and Cozy. Current revenue,
Warm Hands, a small company based in Prince Edward Island, manufactures and sells two types of lightweight gloves for runners- Warm and Cozy. Current revenue, cost, and unit sales data for the two products appear below: Warm Cozy Selling price per pair $10. 00 $ 15. 00 Variable expenses per pair $ 2. 50 $ 7. 50 Number of pairs sold monthly 1, 200 units 400 units Fixed expenses are $2,070 per month.c. Compute the breakeven point in units for the company as a whole and the margin of safety in both units (pairs of gloves} and percentage of sales. {Round percentage answer to 2 decimal pl aces.) Breakeven units Margin ofsafety in units Margin of safety in percentage d. Compute how many pairs of gloves must be sold overall if the company wants to make an aftertax target prot of $10,500 and the tax rate is 30%. Assume that the sales mix remains the same as shown above
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