Bill Johnson, sales manager, and Diane Buswell, controller, at Current Designs are beginning to analyze the cost considerations for one of the composite models of the kayak division. They have provided the following production and operational costs necessary to produce one composite kayak.

Kevlar		$240	per kayak
Resin and supplies		$190	per kayak
Finishing kit (seat, rudder, ropes, etc.)		$180	per kayak
Direct Labor		$480	per kayak
Selling and administrative expensesvariable		$480	per kayak
Selling and administrative expensesfixed		$112,800	per year
Manufacturing overheadfixed		$240,000	per year

Bill and Diane have asked you to provide a cost-volume-profit analysis, to help them finalize the budget projections for the upcoming year. Bill has informed you that the selling price of the composite kayak will be $2,200.

(a)

Correct answer icon

Your answer is correct.

Calculate unit variable costs.

Unit variable costs

$enter the unit variable costs in dollars

per unit

Attempts: 1 of 3 used

(b)

Correct answer icon

Your answer is correct.

Determine the unit contribution margin.

Contribution margin

$enter the contribution margin per unit in dollars

per unit

Attempts: 1 of 3 used

(c)

Correct answer icon

Your answer is correct.

Using the unit contribution margin, determine the break-even point in sales units for this product line.

Break-even point

enter the break-even point in units

units

Attempts: 1 of 3 used

PLEASE ONLY ANSWER D BELOW!!!

(d)

Assume that Current Designs would like to earn net income of $248,850 on this product line. Using the unit contribution margin, calculate the number of units that need to be sold to achieve this goal.

Number of units to be sold

enter a number of units to be sold

units