Question 1

ABC Corporation sells a single product for $50. Its management estimates the following revenues and costs for the year 2020:

Net sales		$525,000		Selling expensesvariable		$19,700
Direct materials		153,800		Selling expensesfixed		18,100
Direct labour		59,900		Administrative expensesvariable		10,100
Manufacturing overheadvariable		19,000		Administrative expensesfixed		9,200
Manufacturing overheadfixed		18,000

Assume the price remains at $50 per unit and variable costs remain the same per unit, but fixed costs increase by 20% annually. Calculate the percentage increase in unit sales required to achieve the same level of annual profit calculated in part (b). (Round answer to 2 decimal places, e.g. 15.25%.)

Percent increase in unit sales

%