Question
I am NOT SURE about what numbers to calculate and what formulas to calculate ? Direct materials$630,000$21100%Direct labor300,00010100Manufacturing overhead (fixed and variable)720,0002425Selling and administrative expenses600,0002020Totals:
I am NOT SURE about what numbers to calculate and what formulas to calculate ?
Direct materials$630,000$21100%Direct labor300,00010100Manufacturing overhead (fixed and variable)720,0002425Selling and administrative expenses600,0002020Totals: $2,250,000$75
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.)
Compute the total fixed costs budgeted for the year.
Compute the variable costs per unit.
Compute the contribution margin per pair of boots.
Compute the number of pairs that must be produced and sold annually to break even at a sales price of $121 per pair.
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