Queson 1:

Pharlap Enterprises sells spor#ng memorabilia. You are provided with the following

informa#on in rela#on to budget predic#ons for the coming year:

Es#mated sales units for the year 25,000 units

Selling price per unit $40 / unit

Variable cost per unit $16 / unit

Total xed costs for the year $361,900

a)Fixed costs have increased by $31,400 and Variable costs are to increase to $18 per unit. Management has decided to maintain the selling price at its current value. By how many units will sales volume have to increase from the current estimated sales projection to achieve the same profit of $200,000?