Question

Help System Announcements CALCULATOR PRINTER VERSION 4 BACK NEXTI Exercise 5-14 (Video) (Part Level Submission) Naylor Company had $210,000 of net income in 2019 when the selling price per unit was $150, the variable costs per unit were $90, and the fixed costs were $570,000. Management expects per unit data and total fixed costs to remain the same in 2020. The president of Naylor Company is under pressure from stockholders to increase net Income by $52,000 in 2020. (a) x Your answer is incorrect. Try again. Compute the number of units sold in 2019. units Click If you would like to show Work for this question: Open Show Work Attempts: 2 of 15 used SAVE FOR LATER SUBMIT ANSWER (b) The parts of this question must be completed in order. This part will be available when you complete the part above. (c) The parts of this question must be completed in order. This part will be available when you complete the part above.

Answer 1

Solution:
a.	Number of units sold in 2019 is 13,000
Working Notes:
	Let Z be the number of units sold in 2019
Now	we use net income and other data which required to compute net income.
	Net income = sales - variable cost - fixed cost
	where
	Net income = $210,000 given
	Sales = no of units sold x selling price = Z x $150
	Variable cost = no of units sold x variable cost per unit = Z x $90
	Fixed costs = $570,000
Hence	Net income = sales - variable cost - fixed cost
	$210,000 = (Z x $150) - (Z x $90) - $570,000
	$210,000 = Z x $60 - $570,000
	Z= ($210,000 + $570,000)/$60
	Z= 13,000

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