Finch Company produces a product that has a variable cost of $27 per unit and a sales price of $62 per unit. The companys annual fixed costs total $780,000. It had net income of $340,000 in the previous year. In an effort to increase the companys market share, management is considering lowering the selling price to $52 per unit.

Required

If Finch desires to maintain net income of $340,000 how many additional units must it sell to justify the price decline?

Assume that in addition to lowering its selling price to $52, Finch also desires to increase its net income by $80,000. Determine the number of units the company must sell to earn the desired income.

If Finch desires to maintain net income of $340,000 how many additional units must it sell to justify the price decline?

Additional units required

units

Assume that in addition to lowering its selling price to $52, Finch also desires to increase its net income by $80,000. Determine the number of units the company must sell to earn the desired income.

Number of units sold

Required