YUX Corporation sells a single product for $50. Its management estimates the following revenues and costs for the year 2020:

Net sales

$525,000Selling expensesvariable

$20,300Direct materials

148,000Selling expensesfixed

18,600

Direct labour

65,900Administrative expensesvariable

10,000Manufacturing overheadvariable

18,300Administrative expensesfixed

10,800

Manufacturing overheadfixed

17,400

A.

Determine the percentage increase in annual profits if YUX Corporation increases its selling price by 20% and all other factors (including demand) remain constant.(Round answer to 2 decimal places, e.g. 15.25%.)

Percent increase in profit =

B.

Assume the price remains at $40 per unit and variable costs remain the same per unit, but fixed costs increase by 20% annually. Calculate the percentage increase in unit sales required to achieve the same level of annual profit calculated in part (b).(Round answer to 2 decimal places, e.g. 15.25%.)

Percent increase in unit sales%