Question
Ivanhoe Company had $177,900 of net income in 2024 when the unit selling price was $154, the unit variable costs were $98, and the
Ivanhoe Company had $177,900 of net income in 2024 when the unit selling price was $154, the unit variable costs were $98, and the fixed costs were $572,500. Management expects per unit data and total fixed costs to remain the same in 2025. The president of Ivanhoe Company is under pressure from stockholders to increase net income by $93,800 in 2025. Assume that Ivanhoe Company sells the same number of units in 2025 as it did in 2024. What would the unit selling price have to be in order to reach the stockholders' desired net income, assuming the unit variable costs and fixed costs remain at 2024 levels?
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Accounting Tools For Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Jill E. Mitchell
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