s edugen WieyPLUS Weygandt, Financial & Managerial Accounting, 2e Hele I System

Question

s edugen WieyPLUS Weygandt, Financial & Managerial Accounting, 2e Hele I System PRINTER VERSION BACK Exercise 19-14 (Part Level Submission) Naylor Company had $154300 ar net income in 2016when the selling pre, per uit "as Sis.ee nainot, Peer ree n., r costs were $572,500. Management expects per unit deta and total fxed costs to remain the same in 2017. The president of Naylor Company under pressure from stockhoiders to increase net income by $61,900 in 2012 (a) Pect your answer is income. Try bgan. Compute the number of units sold in 2016. (Round answer to O deeimal jlaces . 1,225. missise) 13145 usits AttemptsI 1 of 3 usedsaVE FOR LAFEn The parts of

Explanation / Answer

Let the number of units sold in 2016 be X

Contribution per unit

= Selling price per unit – Variable costs per unit

= $154 - $94

= $60 per unit

So, Total contribution

= Contribution per unit x Number of units

= $60 x X

= $60 X

Now, Net Income

= Total contribution – Fixed costs

So, $154,300 = $60 X - $572,500

So, $60 X = $154,300 + $572,500

So, X = $726,800 / $60

So, X = 12,113.33 or 12,114 units

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