Lomax Corporation manufactures hiking boots. For the coming year, the company has budgeted the following costs for the production and sale of 40,000 pairs of boots: Required: a. Compute the sales price per unit that would result in a budgeted operating income of $720,000, assuming that the company produces and sells 40,000 pairs. (Hint: First compute the budgeted sales revenue needed to produce this operating income.) b. Assume that the company decides to sell the boots at a unit price of $90 per pair. b-1. Compute the total fixed costs budgeted for the year. b-2. Compute the variable cost per unit. b-3. Compute the contribution margin per pair of boots. b-4. Compute the number of pairs that must be produced and sold annually to break even if management decides to set the sales price at $90 per pair