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Felde Company had $150,000 of net income in 2011 when the s4elling price per unit was $150, the variable costs per unit were $90, and the fixed costs were $570,000.Management expects per unit data and total fixed costs to remain the same in 2012. The president of Felde Company is under pressure from stockholders to increase netincome by $60,000 in 2012.   Instructions   (a) Compute the number of units sold in 2011.   (b) Compute the number of units that would have to be sold in 2012 to reach the stockholders’ desired profit level.

Felde Company had $150,000 of net income in 2011 when the s4elling price per unit was $150, the variable costs per unit were $90, and the fixed costs were $570,000.Management expects per unit data and total fixed costs to remain the same in 2012. The president of Felde Company is under pressure from stockholders to increase netincome by $60,000 in 2012.   Instructions   (a) Compute the number of units sold in 2011.   (b) Compute the number of units that would have to be sold in 2012 to reach the stockholders’ desired profit level.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Felde Company had $150,000 of net income in 2011 when the s4elling price per unit was $150, the variable costs per unit were $90, and the fixed costs were $570,000.Management expects per unit data and total fixed costs to remain the same in 2012. The president of Felde Company is under pressure from stockholders to increase netincome by $60,000 in 2012.

 

Instructions

 

(a) Compute the number of units sold in 2011.

 

(b) Compute the number of units that would have to be sold in 2012 to reach the stockholders’ desired profit level.

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