Rooney Company produces a product that has a variable cost of $$21$ per unit and a sales price of $$61$ per unit. The company's annual

fixed costs total $$710,000.$ It had net income of $$270,000$ in the previous year. In an effort to increase the company's market share,

management is considering lowering the selling price to $$53$ per unit.

Required

a$.$ If Rooney desires to maintain net income of $$270,000,$ how many additional units must it sell to justify the price decline?

b$.$ Assume that in addition to lowering its selling price to $$53,$ Rooney also desires to increase its net income by $$76,000.$ Determine

the number of units the company must sell to earn the desired income.

Complete this question by entering your answers in the tabs below.

Required $A$

If Rooney desires to maintain net income of $$270,000,$ how many additional units must it sell to justify the price decline? Rooney Company produces a product that has a variable cost of $$21$ per unit and a sales price of $$61$ per unit. The company's annual

fixed costs total $$710,000.$ It had net income of $$270,000$ in the previous year. In an effort to increase the company's market share,

management is considering lowering the selling price to $$53$ per unit.

Required

a$.$ If Rooney desires to maintain net income of $$270,000,$ how many additional units must it sell to justify the price decline?

b$.$ Assume that in addition to lowering its selling price to $$53,$ Rooney also desires to increase its net income by $$76,000.$ Determine

the number of units the company must sell to earn the desired income.

Complete this question by entering your answers in the tabs below.

Required $A$

Assume that in addition to lowering its selling price to $$53,$ Rooney also desires to increase its net income by $$76,000.$

Determine the number of units the company must sell to earn the desired income.