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20 pts Blaster Corporation manufactures hiking boots. For the coming year, the company has budgeted the following costs for the production and sale of 30,000

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20 pts Blaster Corporation manufactures hiking boots. For the coming year, the company has budgeted the following costs for the production and sale of 30,000 pairs of boots: Budgeted Costs Budgeted Costs Percentage of Costs Considered Variable per Pair $21 10 100% 100 Direct materials Direct labor... Manufacturing overhead (fixed and variable). Selling and administrative expenses Totals $ 630.000 300,000 720.000 600,000 $2.250.000 24 20 $75 25 20 Instructions 1. Compute the sales price per unit that would result in a budgeted operating income of $900,000, assuming that the company produces and sells 30,000 pairs. (Hint: First compute the budgeted sales revenue needed to produce this operating income.) 2. Assuming that the company decides to sell the boots at a unit price of $121 per pair, compute the following: 3. Total fixed costs budgeted for the year. 4. Variable cost per unit. 5. The unit contribution margin. 6. The number of pairs that must be produced and sold annually to break even at a sales price of $121 per pair. HTML Editore

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