# Accounting

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.)
1. Compute CollegePak's break-even point in sales dollars for the year.
2. Compute the number of sales units required to earn a net income of \$180,000 during the year.
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.
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.

1. 👍
2. 👎
3. 👁
1. 1. \$630,000
2. 54,000 units
3. \$ 600,000
4. \$32

1. 👍
2. 👎

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