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Sandhill Company had $267,000 of net income in 2019 when the selling price per unit was $153, the variable costs per unit wer

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Net Income in 2019 $267,000
Add: Fixed costs $574,000
Contribution Margin (a) in 2019 $841,000
Selling price per unit in 2019 $153
Less: Variable cost per unit in 2019 ($95)
Contribution Margin per unit (b) in 2019 $58
Number of units sold in 2019 (a/b) 14,500
Expected net income in 2020 ($267,000 + $87,000) $354,000
Add: Fixed costs $574,000
Contribution Margin (a) in 2020 $928,000
Contribution Margin per unit (b) in 2020 $58
Number of units sold in 2020 (a/b) 16,000
Expected net income in 2020 ($267,000 + $87,000) $354,000
Add: Fixed costs $574,000
Contribution Margin (a) in 2020 $928,000
Add: Variable costs (14,500 units * $95 per unit) $1,377,500
Sales revenue (a) $2,305,500
Number of units sold in 2020 (b) 14,500
New selling price (a/b) $159
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