Toronto Corporation manufactures tables. For the coming year, the company has budgeted the following costs for the production and sale of $30,000$ tables.

Budgeted Costs Budgeted

Costs

per Pair Percentage

of Costs

Considered

Variable

Direct materials $ $630,000$ $ $21100\%$

Direct labor $300,00010100$

Manufacturing overhead $($fixed and variable$)720,0002425$

Selling and administrative expenses $600,0002020$

Totals $ $2,250,000$ $ $75$

$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

Required:

a$.$ Compute the sales price per table that would result if the company wants to achieve operating income of $$900,000,$ assuming that the company produces and sells $30,000$ pairs.

Assume that the company decides to sell the tables at a unit price of $$121.$

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 at a sales price of $$121$ per pair.