1. Smiley Company had net income of $50,000 last year when the selling price per unit was $12, the variable costs were $6, and the fixed costs were $250,000. Management expects per unit data and fixed costs to be the same in the new year, and has set a goal of earning net income of $70,000.

1a. Compute the number of units sold last year. ________units

1b. Compute the number of units that will have to be sold in the new year to meet management's goal for net income. _______units

1c. Assume that Smiley's sales projections show the same number of units will be sold in the new year as were sold last year. What selling price will they have to use in order to reach their desired income level?

$______ per unit