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CollegePak Company produced and sold 72,000 backpacks during the year just ended at an average price of $32 per unit. Variable manufacturing costs were $13.00
CollegePak Company produced and sold 72,000 backpacks during the year just ended at an average price of $32 per unit. Variable manufacturing costs were $13.00 per unit, and variable marketing costs were $4.92 per unit sold. Fixed costs amounted to $542,000 for manufacturing and $217,600 for marketing. There was no year-end work-in-process inventory. (Ignore income taxes.)
Required:
- Compute CollegePak's break-even point in sales dollars for the year.(Do not round intermediate calculations.Round your final answer up to the nearest whole dollar.)
- Compute the number of sales units required to earn a net income of $550,000 during the year.(Do not round intermediate calculations. Round your final answer up to nearest whole number.)
- CollegePak's variable manufacturing costs are expected to increase by 10 percent in the coming year. Compute the firm's break-even point in sales dollars for the coming year.(Do not round intermediate calculations.Round your final answer up to the nearest whole dollar.)
- If CollegePak's variable manufacturing costs do increase by 10 percent, compute the selling price that would yield the same contribution-margin ratio in the coming year.(Do not round intermediate calculations. Round your final answer to 2 decimal places.)
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