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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 Percentage of Costs Considered Budgeted Costsper 63e, eee 380,ee 20,ee0 6ee.eee 1ee 1ee 25 28 $ 21 1e Direct materials Direct labor Manufacturing overhead (fixed and variable) Selling and administrative expenses Totals 24 28 $ 75 s 2,25e,8ee Required: 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) Assume that the company decides to sell the boots at a unit price of $121 per pair b-1. Compute the total fixed costs budgeted for the year b-2. Compute the variable cost per unit b-3. Compute the contribution margin per pair of boots. 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. produces and sells 30,000 pairs. (Hint First compute the budgeted sales revenue needed to produce this operating income) Assume that the company decides to sell the boots at a unit price of $121 per pair b-1. Compute the total fixed costs budgeted for the year b-2. Compute the variable cost per unit b-3. Compute the contribution margin per pair of boots. 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. a Sales price per unit Total fixed costs Variable cost per unit Contribution margin Number of pairs required to break even 2. per pair of boots 3

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