College Park Corporation produced and sold 150,000 units of its only product during the year just ended at an average price of $12 per unit. Variable manufacturing costs were $5 per unit, and variable marketing costs were $3 per unit sold. Fixed costs amounted to $250,000 for manufacturing and $170,000 for marketing. There was no year-end work-in-process inventory.

Show all the steps and calculations

1. a) Compute College Park Corporations break-even point in sales units for the year just ended.

b) Compute College Park Corporations break-even point in sales dollars for the year just ended.

2. Compute the revenue that would have been required to earn an operating income of $200,000 during the year just ended.

3. College Park Corporations variable costs are expected to increase by 20 % in the coming year. Compute the break-even point in sales units for the coming year.

4. If College Park Corporations variable manufacturing costs do in fact increase by 20 percent but the variable marketing costs remain the same (i.e., at $3 per unit), then compute the selling price that would yield the same contribution-margin ratio in the coming year as was achieved in the current year just ended.