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 per Pair			Percentage of Costs Considered Variable
Direct materials	$	630,000			$	21			100	%
Direct labor		300,000				10			100
Manufacturing overhead (fixed and variable)		720,000				24			25
Selling and administrative expenses		600,000				20			20
Totals	$	2,250,000			$	75

Required:

a. 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.)

Assume that the company decides to sell the boots at a unit price of $121 per pair.

b-1. Compute the total fixed costs budgeted for the year.

b-2. Compute the variable cost per unit.

b-3. Compute the contribution margin per pair of boots.

b-4. Compute the number of pairs that must be produced and sold annually to break even at a sales price of $121 per pair.