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QUESTION E NO Product Pricing: Single Product Presented is the 2009 contribution income statement of Colgate Products. COLGATE PRODUCTS Contribution Income Statement For Year Ended December 31, 2009 720,000 Sales (6,000 units) Less variable costs Cost of goods sold Selling and administrative Contribution margin Less fixed costs Manufacturing overhead Selling and administrative $240,000 66,000 (306,000) 414,000 290,000 90,000 (380,000) Net income 34,000 During the coming year, Colgate expects an increase in variable manufacturing costs of $6 per unit and in fixed manufacturing costs of $24,000 (al If sales for 2010 remain at 6,000 units, what price should Colgate charge to obtain the same profit as last year? s 256 (b) Management believes that sales can be increased to 8,000 units if the selling price is lowered to $105. What would be the excepted profit (or loss) as a result of this action? Use a negative sign with your answer, if appropriate (c) After consider 34,000 with a unit selling price of $105? ing the expected increases in costs, what sales volume is needed to earn a profit of units