CollegePak Company produced and sold 60000 backpacks during the year just ended

CollegePak Company produced and sold 60000 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 $180000 for manufacturing and $72000 for marketing. There was no year-end work-in-process inventory. (Ignore income taxes.)1. Compute CollegePaks break-even point in sales dollars for the year.2. Compute the number of sales units required to earn a net income of $180000 during the year.3. CollegePaks variable manufacturing costs are expected to increase by 10 percent in the coming year. Compute the firms break-even point in sales dollars for the coming year.4. If CollegePaks variable manufacturing costs do increase by 10 percent compute the selling price that would yield the same contribution-margin ratio in the coming year.