Naylor Company had $150,600 of net income in 2016 when the selling price per uni

Question

Naylor Company had $150,600 of net income in 2016 when the selling price per unit was $150, the variable costs per unit were $90, and the fixed costs were $570,600. Management expects per unit data and total fixed costs to remain the same in 2017. The president of Naylor Company is under pressure from stockholders to increase net income by $60,600 in 2017.

Number of units sold in 2016 = 12,020 Units

Compute the number of units that would have to be sold in 2017 to reach the stockholders’ desired profit level. _____ units

Explanation / Answer

Number of units to be sold = (150600+60600+570600)/(150-90)= 13030

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