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QUESTION: NAYLOR COMPANY HAD $155.400 OF NET INCOME IN 2013 WHEN THE SELLING PRICE PER UNIT WAS $160. THE VARIABLE COSTS PER UNIT WERE $100, AND THE FIXED COSTS WERE $574.200. MANAGEMENT EXPECTS PER UNIT DATA AND TOTAL FIXED COSTS TO REMAIN THE SAME IN 2014. THE PRESIDENT OF NAYLOR COMPANY IS UNDER PRESSURE FROM STOCKHOLDERS TO INCREASE NET INCOME BY $64.200 IN 2014. A) COMPUTE THE NUMBER OF UNITS SOLD IN 2013. B) COMPUTE THE NUMBER OF UNITS THAT WOULD HAVE TO BE SOLD IN 2014 TO REACH THE STOCKHOLDERS' DESIRED PROFIT LEVEL. **ASSUME THAT NAYLOR COMPANY SELLS THE SAME NUMBER OF UNITS IN 2014 AS IT DID IN 2013.

QUESTION: NAYLOR COMPANY HAD $155.400 OF NET INCOME IN 2013 WHEN THE SELLING PRICE PER UNIT WAS $160. THE VARIABLE COSTS PER UNIT WERE $100, AND THE FIXED COSTS WERE $574.200. MANAGEMENT EXPECTS PER UNIT DATA AND TOTAL FIXED COSTS TO REMAIN THE SAME IN 2014. THE PRESIDENT OF NAYLOR COMPANY IS UNDER PRESSURE FROM STOCKHOLDERS TO INCREASE NET INCOME BY $64.200 IN 2014. A) COMPUTE THE NUMBER OF UNITS SOLD IN 2013. B) COMPUTE THE NUMBER OF UNITS THAT WOULD HAVE TO BE SOLD IN 2014 TO REACH THE STOCKHOLDERS' DESIRED PROFIT LEVEL. **ASSUME THAT NAYLOR COMPANY SELLS THE SAME NUMBER OF UNITS IN 2014 AS IT DID IN 2013.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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QUESTION: NAYLOR COMPANY HAD $155.400 OF NET INCOME IN 2013 WHEN THE SELLING PRICE PER UNIT WAS $160. THE VARIABLE COSTS PER UNIT WERE $100, AND THE FIXED COSTS WERE $574.200. MANAGEMENT EXPECTS PER UNIT DATA AND TOTAL FIXED COSTS TO REMAIN THE SAME IN 2014. THE PRESIDENT OF NAYLOR COMPANY IS UNDER PRESSURE FROM STOCKHOLDERS TO INCREASE NET INCOME BY $64.200 IN 2014. A) COMPUTE THE NUMBER OF UNITS SOLD IN 2013. B) COMPUTE THE NUMBER OF UNITS THAT WOULD HAVE TO BE SOLD IN 2014 TO REACH THE STOCKHOLDERS' DESIRED PROFIT LEVEL. **ASSUME THAT NAYLOR COMPANY SELLS THE SAME NUMBER OF UNITS IN 2014 AS IT DID IN 2013.
Transcribed Image Text:QUESTION: NAYLOR COMPANY HAD $155.400 OF NET INCOME IN 2013 WHEN THE SELLING PRICE PER UNIT WAS $160. THE VARIABLE COSTS PER UNIT WERE $100, AND THE FIXED COSTS WERE $574.200. MANAGEMENT EXPECTS PER UNIT DATA AND TOTAL FIXED COSTS TO REMAIN THE SAME IN 2014. THE PRESIDENT OF NAYLOR COMPANY IS UNDER PRESSURE FROM STOCKHOLDERS TO INCREASE NET INCOME BY $64.200 IN 2014. A) COMPUTE THE NUMBER OF UNITS SOLD IN 2013. B) COMPUTE THE NUMBER OF UNITS THAT WOULD HAVE TO BE SOLD IN 2014 TO REACH THE STOCKHOLDERS' DESIRED PROFIT LEVEL. **ASSUME THAT NAYLOR COMPANY SELLS THE SAME NUMBER OF UNITS IN 2014 AS IT DID IN 2013.
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