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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

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 budget $630,000; budgeted costs st per pair-$21; % of cost-100%

direct labor budge $300,000; budgeted cost-$10; % of cost-100%

manufacturing overhead $720,000; buggeted cost -24; % of cost-25

selling and administrative exp budgeted costs $600,000; budgeted costs $20; % of costs 20

required:

a. compute the sales price per unit that woukd result in a budgeted operating income of $900,000, assuming that the company produces and sells 39,000 pairs

assume the company decides to sell the boots at a unit price of $121 per pair

compute the total fixed costs budgeted for the year

compute the variable cost per unit.

compute the contribution margin per pair of boots.

compute the number of pairs that must be produced and sold annually to break even at a sales price of $121 per pair

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