Question

67/1 SHOW Attempt History Current Attempt in Progress Blossom Company had $211.600 of net income in 2019 when the selling price per unit was $151, the variable costs per unit were $96, and the fixed costs were $574,900. Management expects per unit data and total foxed costs to remain the same in 2020. The president of Blossom Company is under pressure from stockholders to increase net income by $57.200 in 2020. us Your answer is correct. Compute the number of units sold in 2019. 14300 units Assistance Used e Textbook and Media Attempts: 1 of used ✓ Your answer is correct. Compute the number of units that would have to be sold in 2020 to reach the stockholders'desired profile 15340 units

Answer 1

Requirement (c):

Answer:

Net selling price

$155

Calculations:

i.Desired net income in 2020 = $211,600+$57,200 = $268,800

ii.Sales to get a net income of $268,800 = Desired net income in 2020 + Fixed cost + Variable cost

= $268,800 + $574,900 + (14,300 units* x $96)

= $268,800+574,900+$1,372,800

=$2,216,500

iii.Net selling price = $2,216,500 ÷ 14,300

= $155

*14,300 units taken from requirement (a)