Compute the number of sales units required to earn a net

Reference no: EM13485157

ScholarPak Company produced and sold 76,000 backpacks during the year just ended at an average price of $36.00 per unit. Variable manufacturing costs were $15.00 per unit, and variable marketing costs were $7.20 per unit sold. Fixed costs amounted to $546,000 for manufacturing and $220,800 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 your final answer to nearest whole number.)

2.Compute the number of sales units required to earn a net income of $570,000 during the year. (Do not round intermediate calculations and round your final answer up to nearest whole number.)

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 contribution-margin ratio in the coming year. (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Reference no: EM13485157

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