Reference no: EM132510293

CollegePak Company produced and sold 77,000 backpacks during the year just ended at an average price of $37 per unit. Variable manufacturing costs were $15.50 per unit, and variable marketing costs were $5.22 per unit sold. Fixed costs amounted to $547,000 for manufacturing and $221,600 for marketing. There was no year-end work-in-process inventory. (Ignore income taxes.)

Required:

Question 1: Compute CollegePak's break-even point in sales dollars for the year. (Do not round intermediate calculations. Round your final answer up to the nearest whole dollar.)

Question 2: Compute the number of sales units required to earn a net income of $575,000 during the year. (Do not round intermediate calculations. Round your final answer up to nearest whole number.)

Question 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. (Do not round intermediate calculations. Round your final answer up to the nearest whole dollar.)

Question 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. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)