Question
I managed to to answer( A and B ) but I have difficulty to get the answerforC so I need help explaining how to do
I managed to to answer( A and B ) but I have difficulty to get the answerforC so I need help explaining how to do it.
Johansen Company had $210,000 of operating income in 2020, when the selling price per unit was $161, the variable costs per unit were $111, and the fixed costs were $415,000. Management expects per-unit data and total fixed costs to remain the same in 2021. The president of Johansen Company is under pressure from shareholders to increase operating income by $70,000 in 2021.
A) Calculate the number of units sold in 2020.
Units sold . ( 12500) units
B) Calculate the number of units that would have to be sold in 2021 to reach the shareholders' desired profit level.(Round answer to 0 decimal places, e.g. 125.)
Target Sales ( 13900) units
C) Assume that Johansen 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 shareholders' desired profit level?(Round answer to 2 decimal places, e.g. 15.25.)
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