Question -
Naylor Company had $155,400 of net income in 2013 when the selling price per unit was $164, the variable costs per unit were $104, and the fixed costs were $512,400. 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 $62,400 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 d1e stockholders' desired profit level.