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1) 17% XYZ Company provides the following data: Sales Price $10 Variable Cost per unit - $6 Fixed Cost $20,000 Units sold 6,000 a)

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1) 17% XYZ Company provides the following data: Sales Price $10 Variable Cost per unit - $6 Fixed Cost $20,000 Units sold 6,000 a) 2% - what is meant by contribution margin per unit? b) 5% - By how much should sales price increase if the company wants to raise its advertising costs (fixed cost) by $14,000 while selling the same number of units and keeping the same level of profit? c) 5% If the company doesn't change its sales price of $10, and cannot cut costs, what else would you advise the company to do to cover the anticipated extra $ 14,000 fixed cost to keep the same level of profit? Show by calculation why your advice is correct... d) 5% -How many units need to be sold if the company wants to earn an after tax income of $100,000. The tax rate is 40%.

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