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ok t Finch Company produces a product that has a variable cost of $27 per unit and a sales price of $62 per unit.
ok t Finch Company produces a product that has a variable cost of $27 per unit and a sales price of $62 per unit. The company's annual fixed costs total $780,000. It had net income of $340,000 in the previous year. In an effort to increase the company's market share. management is considering lowering the selling price to $52 per unit. Required a. If Finch desires to maintain net income of $340,000, how many additional units must it sell to justify the price decline? b. Assume that in addition to lowering its selling price to $52, Finch also desires to increase its net income by $80,000. Determine th number of units the company must sell to earn the desired income. ances Complete this question by entering your answers in the tabs below. Required A Required B 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
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