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Minden Company manufactures a high-quality wooden birdhouse that sells for $30 per unit. Variable costs are $6 per unit and fixed costs total $180,000. During
Minden Company manufactures a high-quality wooden birdhouse that sells for $30 per unit. Variable costs are $6 per unit and fixed costs total $180,000. During 2018, Minden Company sold 50,000 birdhouses to customers. The president of Minden Company believes the following changes should be made in 2019: 1. the selling price of the birdhouse should be increased by 20% 2. increase advertising by $30,000 A.)Assume these changes are made. Calculate the number of units Minden Company must sell in 2019 in order to break-even
B.) Assume these changes are made. Calculate the number of units Minden Company must sell in 2019 in order to earn a target profit equal to 25% of sales.
C.) Assume these changes are made. Calculate the number of units Minden Company must sell in 2019 in order to earn a net income that is 80% greater than the net income earned in 2018.
Need help with parts a,b and c. Thank you
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