3 Question 3 20 pts Wilson Corporation produces a large number of fishing products. The costs per unit of a particular fishing reel are as follows: Direct materials and direct labor... $7.00 Variable factory overhead... . 4.00 Fixed factory overhead.... 2.00 The company recently decided to buy 10,000 fishing reels from another manufacturer for $12.50 per unit because "it was cheaper than our cost of $13.00 per unit" Evaluate the decision made by Wilson's management based on the data given. HTML Editora B I VA - A - I E313XXE EN V TTT 12pt Paragraph 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: Direct materials Direct labor... Manufacturing overhead (fixed and variable). Selling and administrative expenses Totals .... Budgeted Costs $ 630,000 300,000 720.000 600,000 S2.250.000 Budgeted Costs per Palr $21 10 24 20 $75 Percentage of Costs Considered Variable 100% 100 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