1. Compute CollegePakâ€™s break-even point in sales dollars for the year.
2. Compute the number of sales units required to earn a net income of $180,000 during the year.
3. CollegePakâ€™s variable manufacturing costs are expected to increase by 10 percent in the coming year. Compute the firmâ€™s break-even point in sales dollars for the coming year.
4. If CollegePakâ€™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.