Adam Granger operates a kiosk in downtown Chicago, at which he sells one style of baseball hat. He..

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. Required a. What is Adam s current level of fixed costs? b. 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? c. What was Adam s margin of safety last year? d. If Adam wants to earn $37,800 in net income, how many hats must he sell? e. How many hats must Adam sell to break even if his supplier raises the price of the hats to $15 per hat? f. What actions should Adam consider in response to his supplier s price increase? g. Adam has decided to increase his sales price to $21 to offset the supplier s price increase. He believes that the increase will result in a 5% reduction from last year s sales volume. What is Adam s expected net income?