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			$	21			100	%
Direct labor		300,000				10			100
Manufacturing overhead (fixed and variable)		720,000				24			25
Selling and administrative expenses		600,000				20			20
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.