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please, hElp with the following problem with as much detailed solution as possible: XYZ Company produces and sells four products. Information about these products for
please, hElp with the following problem with as much detailed solution as possible:
XYZ Company produces and sells four products. Information about these products for November is given below: selling price per unit variable costs per unit number of units sold Product A $65 $24 3,300 Product E $73 $41 1,800 selling price per unit variable costs per unit number of units sold Product I $42 $19 5,100 Producto $88 $56 2,900 The fixed costs for November totaled $124,930. XYZ Company decided they wanted to to promote Product E more and Product I less. Thus, XYZ Company intends to make the following changes in December: 1. Automate a portion of the production process related to Product E. This change will reduce the variable costs of Product E by $3 per unit. 2. Undertake an intense advertising program related to Product E. This advertising would cost a total of $30,000. To pay for this advertising, XYZ Company intends to reduce the advertising of Product I by $10,197 and then pay the remaining amount using their available cash. 3. Adjust the selling price of Product E. Due to these changes, the number of units of Product E that were sold in December doubled while the number of units of Product I that were sold in December decreased by 30%. Assume the sales of Product A and Product O were not impacted by these changes. Calculate the selling price per unit for Product E needed in December in order for the December net income to be 10% larger than the November net incomeStep by Step Solution
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