Adam Granger operates a kiosk in downtown Chicago, at which he sells one style of baseball hat. He buys the hats from a supplier for $14 and sells them for $20. Adam’s current breakeven point is 15,000 hats per year. Contribution margin per unit : $6 Current level of fixed costs: $90000 Assume that Adam’s fixed costs, variable costs, and sales price were the same last year, when he made $21,000 in net income. How many hats did Adam sell last year, assuming a 30% income tax rate? 20000 hats What was Adam’s margin of safety in units and dollars last year? Margin of safety in units enter Margin of safety in units hats Margin of safety in dollars
Adam Granger operates a kiosk in downtown Chicago, at which he sells one style of baseball hat. He buys the hats from a supplier for $14 and sells them for $20. Adam’s current breakeven point is 15,000 hats per year. Contribution margin per unit : $6 Current level of fixed costs: $90000 Assume that Adam’s fixed costs, variable costs, and sales price were the same last year, when he made $21,000 in net income. How many hats did Adam sell last year, assuming a 30% income tax rate? 20000 hats What was Adam’s margin of safety in units and dollars last year? Margin of safety in units enter Margin of safety in units hats Margin of safety in dollars
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 8E
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Adam Granger operates a kiosk in downtown Chicago, at which he sells one style of baseball hat. He buys the hats from a supplier for $14 and sells them for $20. Adam’s current breakeven point is 15,000 hats per year.
| Contribution margin per unit : $6 |
| Current level of fixed costs: $90000 |
Assume that Adam’s fixed costs, variable costs, and sales price were the same last year, when he made $21,000 in net income. How many hats did Adam sell last year, assuming a 30% income tax rate? 20000 hats
What was Adam’s margin of safety in units and dollars last year?
| Margin of safety in units |
enter Margin of safety in units
|
hats | |
| Margin of safety in dollars |
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