Scholes Systems Supplies a particular type of office chair to large retailers such as Torget Costco, and Office Max Schloss concerned about the possible effects of initiation on its operations Presently, the company sells 87000 units for $55 petost The variable production costs are $21 and fixed costs amount to $1470,000 Production engineers have advised management that they expect unit tabor costs to rise by 20 percent and unit materials costs tons by 15 percent in the coming year of the S2 valable costs 60 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 food costs will rise by 7 percentos a tesult of increased taves and other miscellaneous foed charges The company wishes to maintain the same level of profit in real dollar terms it is expected that to accomplish this objective, pronts must increase by 10 percent danng the year Required: 6. Compute the volume in units and the dollar sales lovel necessary to maintain the present profit level assuming that the maximum peice increase is implemented b. Compute the volume of sales and the dolf Snies level necessary to provide the 10 percent increase in profits song that the maximum price increase imponented c. If the volume of sales were to remain at 87000 units what pince change would be required to attain the percent increase in profits? Calculate the new price