Reference no: EM13579542

CollegePak Company produced and sold 60,000 backpacks during the year just ended at an average price of $20 per unit. Variable manufacturing costs were $8 per unit, and variable marketing costs were $4 per unit sold. Fixed costs amounted to $180,000 for manufacturing and $72,000 for marketing. There was no year-end work-in-process inventory. (Ignore income taxes.)
Required:

1.Compute CollegePak's break-even point in sales dollars for the year.(Omit the "tiny_mce_markerquot; sign in your response.)
Break-even point            $

2. Compute the number of sales units required to earn a net income of $180,000 during the year.
Number of sales units

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 your intermediate calculations. Omit the "tiny_mce_markerquot; sign in your response.)
Break-even point             $

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 your intermediate calculations. Round your answer to 2 decimal places. Omit the "tiny_mce_markerquot; sign in your response.)
Selling price                      $