Hello, I am stuck on this accounting question around computing units sold. I'll include a...
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Hello,
I am stuck on this accounting question around computing units sold. I'll include a photo of the problem and the info I have synthesized, but I am unfortunately stuck.
E19-14 Naylor Company had $210,000 of net income in 2013 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 2014. The president of Naylor Company is under pressure from stockholders to increase net income by $52,000 in 2014. Instructions (a) Compute the number of units sold in 2013. (b) Compute the number of units that would have to be sold in 2014 to reach the stock- holders' desired profit level. E19-14 Item Net income Selling price per unit Variable cost per unit Fixed costs 2013 210,000 150 90 570,000 2014 262,000 150 90 570,000
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