Rundle Company produces a product that has a variable cost of $$26$ per unit and a sales price of $$58$ per unit. The company's annual fixed costs total $$660,000.$ It had net income of $$260,000$ in the previous year. In an effort to increase the company's market share, management is considering lowering the selling price to $$51$ per unit.

Required

a$.$ If Rundle desires to maintain net income of $$260,000,$ how many additional units must it sell to justify the price decline?

b$.$ Assume that in addition to lowering its selling price to $$51.$ Rundle also desires to increase its net income by $$80,000.$ Determine the number of units the company must sell to earn the desired income.

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Required B

If Rundle desires to maintain net income of $$260,000,$ how many additional units must it sell to justify the price decline?

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units