Scholes Systems supplies a particular type of office chair 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 95,000 units for $55 per unit. The variable production costs are $25, and fixed costs amount to $1,550,000 Production engineers have advised management that they expect unit labor costs to rise by 15 percent and unit materials costs to rise by 10 percent in the coming year. of the $25 variable costs, 40 percent are from labor and 30 percent are from materials. Variable ovemead costs are expected to increase by 20 percent Sales prices cannot increase more than 10 percent. It is also expected that fixed costs will rise by 7 percent as a result of increased taxes and other miscelianeous fhed charges The company wishes to maintain the same level of pront in real dollar terms. It is expected that to accompish this objective, profnts must increase by 10 percent during the year Required a. Compute the volume in units and the dollar sales level necess ary to maintain the present profnt level, assuming that the maximum price increase is implemented for "Salesto up your answer for Volume in units" to the nearest whole number and round your answer the nearest whole dollar amount.) Volume in units Sales b. Compute the volume of sales and the dolar sales level necessary to provide the 10 percent increase in profnts, assuming that the maximum pice increase is implemented. (Do not round intermediate calculations. Round up your answer for "Volume in units" to the nearest whole number and round your answer for "Sales" to the nearest whole dollar amount.) Volume in units Sales c. If the volume of sales were to remain at 95,000 units, what price change would be required to attain the 10 percent increase in profits? Calculate the new price. (Round intermediate calculations of unit cost and final answer to 2 decimal places.)