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# Basic CVP Computation problem: CollegePak Company produced and sold 60,000 backpacks during the year just ended at an average price of \$20 per unit....

CVP Accounting problem - Hi. I'm stuck on the 3rd part of this accounting problem. Please see the attached file. Thanks!
Basic CVP Computation problem: 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. Fixed expenses / unit contribution margin = Break-even point (\$180,000 + \$72,000) / (\$20 - \$12) = 31,500 X \$20 = \$630,000 \$252,000 / \$8 = \$31,500 X \$20 = \$630,000 CORRECT 2. 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. (Do not round intermediate calculations.) Expenses: \$180,000 + 72,000 = \$252,000 \$252,000 / \$7.20 = \$35,000 X \$20 = \$700,000 CORRECT 3. 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.

Question:
Basic CVP Computation problem:
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...

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