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 Sales 12.000 units) $1,440.000 Less variable costs Cast af goods sold $480,000 Selling and administrative 132.000 ($120001 Contribution margin 828.000 Les fixed costs Manufacturing overhead 529.000 Selling and administrative 200.000 (730,000) Net income $98.000 During the coming year, Colgate expects an increase in variable manufacturing costs of $6 per unit and in fixed manufacturing costs of $48,000. (a) If sales for 2010 remain at 12,000 units, what price should Colgate charge to obtain the same profit as last year? $ 130 (b) Management believes that sales can be increased to 16,000 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 134,000 x (C) After considering the expected increases in costs, what sales volume is needed to earn a profit of $98,000 with a unit selling price of $1057 15,333 * units