Ivanhoe Company had $177,900 of net income in 2019 when the selling price per unit was $154, the variable costs per unit were$98, and the fixed costs were $572,500. Management expects per unit data and total fixed costs to remain the same in 2020. The president of Ivanhoe Company is under pressure from stockholders to increase 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 in order to reach the stockholders’ desired profit level?

Answer rating: 100% (QA)

fx A D F G H 1 1 Contribution Margin per Unit in 2019 Selling Prie per unit Variable ... View the full answer