Ivanhoe Company had $177,900 of net income in 2019 when theselling price per unit was $154, the variable costs per unit were$98, and the fixed costs were $572,500. Management expects per unitdata and total fixed costs to remain the same in 2020. Thepresident of Ivanhoe Company is under pressure from stockholders toincrease net income by $93,800 in 2020.
Compute the number of units sold in 2019.
Compute the number of units that would have to be sold in 2020to reach the stockholders’ desired profit level.
Assume that Ivanhoe Company sells the same number of units in2020 as it did in 2019. What would the selling price have to be inorder to reach the stockholders’ desired profit level?
