P3-47 (similar to) Question Help * come statement showed tha vera le and t xe costs were AS planned Which meant hat he 2017 annual net income Stonena ne Connpsnv manu actures ana sells die se: engines or use n small tamng equipment tor its 2017 budget, Stone Engine Company ne projection would not be met unless management took action. A manegement committee was formed and presented the following mulually exlusiv allenalives lpresieril. y estimates the following: (Click the icon to vew the budget data Click the icon to view the altematives.) I ne tirst-quarter income statement, as ot March 31, reparted thar sales were not meeting expectatons unng the tirst quarrer only 350 units had been sold at the current price of S8,500. Read the requirements Requirement 1a. If no changes are made to the sellng price or cost structure, detemine the number of units tha: Stone Engine Company must sell to breek even. Select the tormula abels enter the amounts and calculate the breakeven number ot enaines More Into Breakeven number ot units Reduce the selling price by 15%. The sales organization forecasts that at this significantly red icnd pe 1 a50 units ran he soki dunng the remander nf the yar Totalxed sts, and variable cost per unt ll stay as budgeted. Lower variable cost per untby S375 through the use of less expensive direct materials The sellin price will also be reducod by 3750, and saks of 1,230 uns arc expccted o the remainder ot the year Reduce fixed costs by 15% End lower the seiing price by 20% vanable cost per unit wil be unchanged. Sales of 1,900 units are expected for te 'ernander of lhe year a. Data Table i Requirements b. Selling price Variable cost per engine Annual fixed costs Net income Incume lax rale B,500 S 5000 5 4,025,000 S 980,000 c. 1. IT no changes are made to 1he selling price or cot stucture, determine he nd number of unns that Stone Engine Company must sell (6) to break even b) to achieve its net income objective Sln Egire shculd se ccl o achieve ils riet your calciuatons 2. Deleine whith alle ali Print Done ncome ob,ective Show 30% Print Done Print Done Choose from any list or enter any number in the input fields and then click Check