Question

U 2327,170 022,032. Assuming CO $369,702 10,JOU alter taxes in 2020? DO 8417,764 EO $472,073 tax rate of 35%, what t/ The following information is available for the 23,300 units of X Company's only product FO $533.4 Company's only product sold in 2019: Selling price Variable costs per unit Total fixed costs $58.60 $11.10 Management believes it can increase the selling price in 2020 with no change in un $442,700 costs would remain the same. What would the selling price have to be in 2020 in costs would remain the same. What wo $830,062? 9. A $33.65 BO $42.06 CO $52.58 DO $65.72 EO $82.16 unit sales. Variable costs per unit and fixed in order for X Company's 2020 profit to be FO $102.70 72 EO $82.16 for its two products:

Answer 1

Let selling price be $x

Hence Contribution margin=Sales-Variable cost  

=(x-11.1) per unit

Total contribution margin would be=Fixed cost+Target profit

=(442700+830062)=1272762

Hence contribution margin per unit=(1272762/23300)=$54.6249785 per unit

Hence

x-11.1=54.6249785

x=(54.6249785+11.1)

=$65.72 per unit(Approx).