Zachary Company produces a product that has a variable cost of $28 per unit and a sales price of $68 per unit. The companys annual fixed costs total $770,000. It had net income of $330,000 in the previous year. In an effort to increase the companys market share, management is considering lowering the selling price to $60 per unit.

Required

If Zachary desires to maintain net income of $330,000, how many additional units must it sell to justify the price decline?

Assume that in addition to lowering its selling price to $60, Zachary also desires to increase its net income by $84,000. Determine the number of units the company must sell to earn the desired income.

Complete this question by entering your answers in the tabs below. If Zachary desires to maintain net income of $330,000, how many additional units must it sell to justify the price decline? Assume that in addition to lowering its selling price to $60, Zachary also desires to increase its net income by $84,000. Determine the number of units the company must sell to earn the desired income