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 $2,250,000 Budgeted Costs per pair $ 21 10 24 20 $ 75 Percentage of Costs Considered Variable 100% 100 25 20 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 a . Sales price per unit 6- 1 Total fixed costs lonic Charge is a newly organized manufacturing business that plans to manufacture and sell 60,000 units per year of a new product. The following estimates have been made of the company's costs and expenses (other than income taxes). Fixed Variable per Unit $ 25 15 8 Manufacturing costs: Direct materials Direct labor Manufacturing overhead Period costs: Selling expenses Administrative expenses Totals $ 500,000 2 300,000 $800,000 $50 Required: a. What should the company establish as the sales price per unit if it sets a target of earning an operating income of $700,000 by producing and selling 60,000 units during the first year of operations? (Hint: First compute the required contribution margin per unit.) b. At the unit soles price computed in part o, how many units must the company produce and sell to break even? (Assume all units produced are sold) c. What will be the margin of safety in dollars) if the company produces and sells 60,000 units at the sales price computed in parta? d. Assume that the marketing manager thinks that the price of this product must be no higher than $60 to ensure market penetration will setting the sales price at $60 enable lonic Charge to break even, given the plans to manufacture and sell 60,000 units