CollegePak Company produced and sold 84,000 backpacks during the year just ended at an average price of $44 per unit. Variable manufacturing costs were $19.00 per unit, and variable marketing costs were $3.88 per unit sold. Fixed costs amounted to $554,000 for manufacturing and $227,200 for marketing. There was no year-end work-in-process inventory. (Ignore income taxes.)

Required:

1.Compute CollegePaks break-even point in sales dollars for the year.

2.Compute the number of sales units required to earn a net income of $610,000 during the year.

3.CollegePak's variable manufacturing costs are expected to increase by 10 percent in the coming year. Compute the firms break-even point in sales dollars for the coming year.

4.If CollegePaks variable manufacturing costs do increase by 10 percent, compute the selling price that would yield the same contribution-margin ratio in the coming year.