Reference no: EM13940939
Blaster Corporation manufactures hiking boots. For the coming year, the company has budgeted the following costs for the production and sale of 30,000 pairs of boots:
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
a. Compute the sales price per unit that would result in a budgeted operating income of $900,000, assuming that the company produces and sells 30,000 pairs. (Hint: First compute the budgeted sales revenue needed to produce this operating income.) (Omit the "tiny_mce_markerquot; sign in your response.)
Sales price per unit $
Assuming that the company decides to sell the boots at a unit price of $121 per pair.
b-1 Compute the amount of total fixed costs budgeted for the year. (Omit the "tiny_mce_markerquot; sign in your response.)
b-2 Compute the amount of variable costs per unit. (Omit the "tiny_mce_markerquot; sign in your response.)
b-3 Compute the amount of the unit contribution margin. (Omit the "tiny_mce_markerquot; sign in your response.)
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. (Omit the "tiny_mce_markerquot; sign in your response.)
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Blaster corporation manufactures hiking boots
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