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RiverbedCompany had $151,800of net income in 2016 when the selling price per unit was $151, the variable costs per unit were $91, and the fixed
RiverbedCompany had $151,800of net income in 2016 when the selling price per unit was $151, the variable costs per unit were $91, and the fixed costs were $575,800. Management expects per unit data and total fixed costs to remain the same in 2017. The president ofRiverbedCompany is under pressure from stockholders to increase net income by $64,300in 2017.
Compute the number of units that would have to be sold in 2017 to reach the stockholders' desired profit level.
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