Help

Save & Exit

Chalmers Corporation operates in multiple areas of the globe, and relatively large price changes are common. Presently, the company sells $151,600$ units for $$50$ per unit. The variable production costs are $$20,$ and fixed costs amount to $$2,084,000.$ Production engineers have advised manag the $$20$ variable costs, $25$ pit labor costs to rise by $10$ percent and unit materials costs to rise by $15$ percent in the coming yearease by $20$ percent. Sales prices percent are from labor and $50$ percent are from materials. Variable overhead costs are expected to in as result of increased taxes and other cannot increase more than $12$ percent. It is also expected that fixed costs will rise by $10$ percent as and other miscellaneous fixed charges.

The company wishes to maintain the same level of profit in real dollar terms. It is expected that to accomplish this objective, profits must increase by $8$ percent during the year.

Required: price increase is implemented.

b$.$ Compute the volume of sales and the dollar sales level necessary to provide the $8$ percent increase in profits, assuming that the increase in profits? Calculate the new price.

Note: Round your answer to $2$ decimal places.

Complete this question by entering your answers in the tabs below.