Question
Naylor Company had $150,700 of net income in 2016 when the selling price per unit was $151, the variable costs per unit were $91, and
Naylor Company had $150,700 of net income in 2016 when the selling price per unit was $151, the variable costs per unit were $91, and the fixed costs were $571,800. Management expects per unit data and total fixed costs to remain the same in 2017. The president of Naylor Company is under pressure from stockholders to increase net income by $65,400 in 2017. Compute the number of units sold in 2016. (Round answer to 0 decimal places, e.g. 1,225.) units Compute the number of units that would have to be sold in 2017 to reach the stockholders desired profit level. units Assume that Naylor Company sells the same number of units in 2017 as it did in 2016. What would the selling price have to be in order to reach the stockholders desired profit level? (Round answer to 2 decimal places, e.g. 12.25.) New selling price $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started