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Product Pricing: Single Product Presented is the 2009 contribution income statement of Colgate Products. During the coming year, Colgate expects an increase in variable manufacturing
Product Pricing: Single Product Presented is the 2009 contribution income statement of Colgate Products. During the coming year, Colgate expects an increase in variable manufacturing costs of $8 per unit and in fixed manufacturing costs of $108,000. If sales for 2010 remain at 18,000 units, what price should Colgate charge to obtain the same profit as last year? $ __________ Management believes that sales can be increased to 24,000 units if the selling price is lowered to $109. What would be the excepted profit (or loss) as a result of this action? Use a negative sign with your answer, if appropriate. ____________ After considering the expected increases in costs, what sales volume is needed to earn a profit of $172,000 with a unit selling price of $109? ____________units
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