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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