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Homework answers / question archive / UniPak Company produced and sold 100,000 backpacks during the year just ended at an average price of $40 per unit

UniPak Company produced and sold 100,000 backpacks during the year just ended at an average price of $40 per unit

Accounting

UniPak Company produced and sold 100,000 backpacks during the year just ended at an average price of $40 per unit. Variable manufacturing costs were $20 per unit, and variable marketing costs were $4 per unit sold. Fixed costs amounted to $240,000 for manufacturing and $80,000 for marketing. There was no year-end work-in-process inventory. (Ignore income taxes.) Required: 1. Compute UniPak's break-even point in sales dollars for the year. 2. Compute the number of sales units required to earn a net income of $360,000 during the year. 3. Unipak's variable manufacturing costs are expected to increase by 15 percent in the coming year. Compute the firm's break-even point in sales dollars for the coming year. 4. If UniPak's variable manufacturing costs do increase by 15 percent, compute the selling price that would yield the same contribution-margin ratio in the coming year.

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