Question
CollegePak Company produced and sold 60,000 backpacks during the year just ended at an average price of $20 per unit. Variable manufacturing costs were $8
CollegePak Company produced and sold 60,000 backpacks during the year just ended at an average price of $20 per unit. Variable manufacturing costs were $8 per unit, and variable marketing costs were $4 per unit sold. Fixed costs amounted to $180,000 for manufacturing and $72,000 for marketing.
1) compute CollegePack's breakeven point in sales dollars for the year.
2) compute the number of sales units required to earn a net income of $ 180,000 during the year.
3) CollegePack's variable manufacturing cost is expected to increase by 10% in the coming year. compute the firm's breakeven point in sales dollars for the coming year.
4)If Collegepack's variable manufacturing cost does increase by 10%, compute the selling price that would yield the sea contribution margin ratio in the coming year.
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