Question

UX Corporation sells a single product for $50. Its management estimates the following revenues and costs...

UX Corporation sells a single product for $50. Its management estimates the following revenues and costs for the year 2020:

Net sales

$525,000Selling expenses—variable

$20,300

Direct materials

148,000Selling expenses—fixed

18,600

Direct labour

65,900Administrative expenses—variable

10,000

Manufacturing overhead—variable

18,300Administrative expenses—fixed

10,800

Manufacturing overhead—fixed

17,400

Assume the price remains at $50 per unit and variable costs remain the same per unit, but fixed costs increase by 20% annually. Calculate the percentage increase in unit sales required to achieve the same level of annual profit calculated in part (b).

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