Blaster Corporation manufactures hiking boots.

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: BudgetedCosts BudgetedCostsper Pair Percentageof CostsConsideredVariableInstructionsa. 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.)b. Assuming that the company decides to sell the boots at a unit price of $121 per pair, compute the following:1. Total fixed costs budgeted for the year.2. Variable costs per unit.3. The unit contribution margin.4. 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: Budgeted costs $ Add: Budgeted operating income Budgeted sales revenue $ Sales price per unit $ b. (1) Total fixed costs: Manufacturing overhead $ 540,000 Selling and administrative expenses Total fixed costs $ (2) Variable costs and expenses per unit: Direct materials $ Direct labor Manufacturing overhead Selling and administrative expenses Total variable costs per unit $ (3) Unit contribution margin: Sales price per unit $ Less: Variable costs per unit [from (2)] Unit contribution margin $ (4) Number of units required to break even: Fixed costs [from (1)] $ Contribution margin per unit [from (3)] $ Number of units required to break even

 
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