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What would purple hat co income or loss be

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The maroon Hat Co. sells hats for a variety of age groups. The following information regarding their hat operation is available based upon expected production level of 15,000 hats:

Sales price: $30.00

Variable expenses:

Supplier cost: $13.00
Sales commission: 4.50

Fixed Expenses:

Advertising $ 2.00
Rent 1.00
Salaries .15

Problem 1. Compute the break-even point in units and sales.

Problem 2. What would Purple Hat Co.'s income or loss be if 9,000 hats are sold?

Problem 3. The company is considering paying the store manager an incentive commission of .75 per hat (in addition to the sales person's commission). If this change is made, what will be the new breakeven point in units and sales?

Reference no: EM132833755

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