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Scholes Systems supplies a particular type of office chain to large retailers such as Target. Costco, and Office Max. Scholes is concerned about the possible

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Scholes Systems supplies a particular type of office chain to large retailers such as Target. Costco, and Office Max. Scholes is concerned about the possible effects of Inflation on its operations. Presently, the company sells 84,000 units for $70 per unit. The variable production costs are $40, and fixed costs amount to $1.440,000. Production engineers have advised management that they expect unit labor costs to rise by 20 percent and unit materials costs to rise by 5 percent in the coming year of the $40 variable costs, 50 percent are from labor and 20 percent are from materials Variable overhead costs are expected to increase by 25 percent. Sales prices cannot increase more than 10 percent. It is also expected that fixed costs will rise by 4 percent as a result of increased taxes and other miscellaneous fixed charges The company wishes to maintain the same level of profit in real dollar terms. It is expected that to accomplish this objective, profits must increase by 6 percent during the year, Required: o. Compute the volume. In units and the dollar sales level necessary to maintain the present profit level, assuming that the maximum price increase is implemented b. Compute the volume of sales and the dollar sales level necessary to provide the 6 percent increase in profits, assuming that the maximum price increase is implemented c. the volume of sales were to remain at 84.000 units, what price change would be required to attain the 6 percent increase in profits? Calculate the new price Complete this question by entering your answers in the tabs below. Required Required Compute the volume in its and the door sales level necessary to maintain the present proht level, assuming that the macam price increase is implemented. Do not und intermediate cautions Pound your for Volume twice bround your for Sales to the next whole damount

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