Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ScholarPak Company produced and sold 74,000 backpacks during the year just ended at an average price of $34.00 per unit. Variable manufacturing costs were $14.00

image text in transcribed

ScholarPak Company produced and sold 74,000 backpacks during the year just ended at an average price of $34.00 per unit. Variable manufacturing costs were $14.00 per unit, and variable marketing costs were $3.88 per unit sold. Fixed costs amounted to $544,000 for manufacturing and $219,200 for marketing. There was no year-end work-in-process inventory. (Ignore income taxes.) 1. Compute ScholarPak's break-even point in sales dollars for the year. Do not round intermediate calculations and round you r final answer to nearest whole number.) 2. Compute the number of sales units required to earn a net income of $580,000 during the year. (Do not round intermediate calculations and round number.) your final answer u p to nearest whole 3. ScholarPak'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 and round your final answer to nearest whole dollar.) 4. If ScholarPak's variable manufacturing costs do increase by 10 percent, compute the selling price that would yield the same intermediate calculations and round your final answer to 2 decimal places.) ratio in the coming year. (Do not round ScholarPak Company produced and sold 74,000 backpacks during the year just ended at an average price of $34.00 per unit. Variable manufacturing costs were $14.00 per unit, and variable marketing costs were $3.88 per unit sold. Fixed costs amounted to $544,000 for manufacturing and $219,200 for marketing. There was no year-end work-in-process inventory. (Ignore income taxes.) 1. Compute ScholarPak's break-even point in sales dollars for the year. Do not round intermediate calculations and round you r final answer to nearest whole number.) 2. Compute the number of sales units required to earn a net income of $580,000 during the year. (Do not round intermediate calculations and round number.) your final answer u p to nearest whole 3. ScholarPak'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 and round your final answer to nearest whole dollar.) 4. If ScholarPak's variable manufacturing costs do increase by 10 percent, compute the selling price that would yield the same intermediate calculations and round your final answer to 2 decimal places.) ratio in the coming year. (Do not round

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Bookkeeping And Accounting For Beginners

Authors: D.K. Livingston

1st Edition

1686248598, 978-1686248597

More Books

Students also viewed these Accounting questions

Question

Define positive thinking and cite its benefits.

Answered: 1 week ago