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x C Accounting question | Ch . ? ? Secure | https://edugen.wileyplus.com/edugen/lti/main.uni WileyPLUS Assignment > Open Assignment CALCULATOR PRINTER VERSION RACK NFXT ASSIGNMENT RESOURCES Exercise 18-14 Naylor Company had $155,200 of net income in 2016 when the selling price per unit was $154, the variable costs per unit were $94, and the fixed costs were $571,900. Management expects per unit data and total fixed costs to remain the same in 2017. The president of Naylor Company is under pressure from stockholders to increase net income by 562,800 in 2017 Question 11 Compute the number of units sold in 2016. (Round answer to 0 decimal places, e.g. 1,225.) units VIDEO:APPLIED SKILLS Brief Fxercise185 Boef Exercise-6 Compute the number of units that would have to be sold in 2017 to reach the stockholders' desired profit level units 18-1 LINK TO TEXT LINK TO TEXI VIDEOI APPLIED SKILLS Do it! Review 18-1 Assume that Naylor Company sells the same number of units in 2017 as it did in 2016. What would the selling price have to be in order to reach the stockholders desired profit level? (Round answer to 2 decimal places, e.g. 12.25.) New selling prices Click if you would like to Show Work for this question: Qpen Show Work Fxercise 18-4 Exercise 18-5 All Rights Reserved, A Division of Version 4.24.6.2 :07 PM 6/11/2018 2Explanation / Answer
given information
Net income = $155,200
selling price =$154
variable price = $94
fixed cost = $571,900
other income = $62,800
(a.) number of units sold:
= (income + fixed cost) / (selling price - variable price)
= $727,100 / $60
= 12,118.33 units or say 12,118.00
(b.) No of units sold to reach stockholders desired profit level:
= (net income + other income + fixed ) / (selling price - variable price)
= $789,900 / ($154 - $94)
= 13,165 units.
(c.) selling price to achieve desired profit level:
no of units = (net income + other income +fixed ) / (selling price - variable price)
12,118 =($789,900) / (selling price - $94)
selling price - $94 = $789,900 / 12,118
selling price = $65.184 + $94
therefore the selling price to achieve the desired profit is $159.184 or $159.00
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