Question
Sheridan Company had $247,500 of net income in 2021 when the unit selling price was $156, the unit variable costs were $96, and the
Sheridan Company had $247,500 of net income in 2021 when the unit selling price was $156, the unit variable costs were $96, and the fixed costs were $574,500. Management expects per unit data and total fixed costs to remain the same in 2022. The president of Sheridan Company is under pressure from stockholders to increase net income by $41,100 in 2022. (a) Your answer is correct. Compute the number of units sold in 2021. Sales in 2021 13700 units Compute the number of units that would have to be sold in 2022 to reach the stockholders' desired net income. Units needed in 2022 units
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