Wildhorse Cash, Ltd$.$ operates a chain of exclusive ski hat boutiques in the western United States. The stores purchase several hat styles from a single distributor at $$14$ each. All other

costs incurred by the company are fixed. Wildhorse Cash, Ltd$.$ sells the hats for $$35$ each.

$($a$)$

If fixed costs total $$378,000$ per year, what is the breakeven point in units? In sales dollars?

The breakeven point

hats

The breakeven sales $

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$($b$)$

What is Wildhorse Cash's contribution margin ratio? Its variable cost ratio?

Contribution margin ratio

$\%$

Variable cost ratio

$\%$

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