9 . SM Company had $150,000 of net income in 2020 when the selling price per unit was $150, the variable costs per unit were $90, and the fixed costs were $570,000. Management expects per unit data and total fixed costs to remain the same in 2021. The president of SM Company is under pressure from stockholders to increase net income by $60,000 in 2021. Instructions (a) Compute the number of units sold in 2020. (b) Compute the number of units that would have to be sold in 2021 to reach the stockholders' desired profit level. (c) Assume that SM Company sells the same number of units in 2021 as it did in 2020. What would the selling price have to be in order to reach the stockholders' desired profit level? 10. The budget committee of SSRC Company collects the following data for its Trish Store in preparing budgeted income statements for May and June 2021. Sales for May are expected to be $800,000. Sales in June and July are expected to be 10% higher than the preceding month. | Cost of goods sold is expected to be 75% of sales. O Company policy is to maintain ending merchandise inventory at 20% of the following month's cost of goods sold. Operating expenses are estimated to be: Sales salaries $30,000 per month * Advertising 5% of monthly sales of Delivery expense 3% monthly sales commissions 4% Sales of monthly sales Rent expense $5,000 per month Depreciation $800 per month Utilities $600 per month Insurance $500 per month Income taxes are estimated to be 30% of income from operations. Instructions: (a) Prepare the merchandise purchases budget for each month in columnar form. (b) Prepare budgeted income statements for each month in columnar form. Show in the statements the details of cost of goods sold