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QUESTION

I am NOT SURE about what numbers to calculate and what formulas to calculate ?

I am NOT SURE about what numbers to calculate and what formulas to calculate ?

Direct materials$630,000 $21    100 %   Direct labor 300,000  10    100     Manufacturing overhead (fixed and variable) 720,000  24    25     Selling and administrative expenses 600,000  20    20             Totals: $2,250,000 $75        

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.)

Compute the total fixed costs budgeted for the year.

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