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Please answer this question! Thank you. CollegePak Company produced and sold 60,000 backpacks during the year just ended at an average price of $20 per
Please answer this question! Thank you.
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. There was no year-end work-in-process inventory. (Ignore income taxes.) Required: 1. Compute CollegePak's break-even 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. 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. 4. 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. (Round your final answer to the nearest whole dollar amount.) 1. Break-even point 2. Number of sales 3. Break-even point 4. Selling price unitsStep by Step Solution
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