units. Current plant capacity is $20,000$ units.

The following are the current$-$year data assembled for your analysis:

Required:

a$.$ What increase in the selling price is necessary to cover the $15$ percent increase in direct labor cost and still maintain the current contribution margin ratio of $40$ percent?

estimated operating income at full capacity before and after the expansion.

Complete this question by entering your answers in the tabs below.

What increase in the selling price is necessary to cover the $15$ percent increase in direct labor cost and still maintain the

current contribution margin ratio of $40$ percent?