Sports Caps Co. manufactures caps for sporting events. The fixed costs of operating the company are...

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Sports Caps Co. manufactures caps for sporting events. The fixed costs of operating the company are $175,000 per month and variable costs are $8 per cap. The caps are sold for $12 per unit. The production capacity is 125,000 caps. • Calculate the following . Contribution margin per cap Break even in units . Amount of income at 45,000 caps sold • Amount of income at 90,000 caps sold • Number of caps produced and sold to provide $100,000 of income. • Contribution margin ratio Break even in sales dollars. Sports Caps Co. manufactures caps for sporting events. The fixed costs of operating the company are $175,000 per month and variable costs are $8 per cap. The caps are sold for $12 per unit. The production capacity is 125,000 caps. • Calculate the following . Contribution margin per cap Break even in units . Amount of income at 45,000 caps sold • Amount of income at 90,000 caps sold • Number of caps produced and sold to provide $100,000 of income. • Contribution margin ratio Break even in sales dollars.

Answer rating: 100% (QA)

1 Contribution margin per cap selling price variable cost 12 8 4 2 Break even point u... View the full answer