SJ Candles is performing a cost-volume-profit analysis to prepare for year 2. Fixed costs are expected...

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SJ Candles is performing a cost-volume-profit analysis to prepare for year 2. Fixed costs are expected to remain the same as year 1. but variable costs per unit are expected to increase by 10%. They plan to keep the same sales price but they're nervous about the increase in variable costs and want to know what to expect. Apply the anticipated change in variable costs to an analysis of year 1. How many units will SJ Candles have to sell in year 2 to make the same operating profit? SJ Candles Contribution Margin Income Statement Year 1 Sales (25,700 units) Less Total Variable Costs Contribution Margin Less Total Fixed Costs Operating Profit a. 25,700 units b. 27,053 units c. 28,270 units d. 29,983 units $385,500 128,500 $257,000 181,500 $75,500 SJ Candles is performing a cost-volume-profit analysis to prepare for year 2. Fixed costs are expected to remain the same as year 1. but variable costs per unit are expected to increase by 10%. They plan to keep the same sales price but they're nervous about the increase in variable costs and want to know what to expect. Apply the anticipated change in variable costs to an analysis of year 1. How many units will SJ Candles have to sell in year 2 to make the same operating profit? SJ Candles Contribution Margin Income Statement Year 1 Sales (25,700 units) Less Total Variable Costs Contribution Margin Less Total Fixed Costs Operating Profit a. 25,700 units b. 27,053 units c. 28,270 units d. 29,983 units $385,500 128,500 $257,000 181,500 $75,500

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