Sales in 2024 units eTextbook and Media (b) Attempts: 1 of 10 user Compute the number of units that would have to be sold in 2025 to reach the stockholders' desired net income. Units needed in 2025 New unit selling price \$ unit selling price have to be in order to reach the stockholders' desired net income, assuming the unit variable costs and fixed costs remain at 2024 levels? (c) eTextbook and Media
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Bonus Knowledge
To understand how to calculate the number of units needed to be sold in 2025, it’s crucial to first identify the stockholders' desired net income, fixed costs, and variable costs per unit from 2024. You'd typically use the formula: (Selling Price per Unit - Variable Cost per Unit) × Number of Units - Fixed Costs = Desired Net Income. This will guide you in figuring out the necessary sales figure (units) while keeping costs consistent. As for the unit selling price needed to achieve the desired net income, this can be derived from rearranging the previous equation. Once you've calculated the number of units, you can determine the desired unit price using the formula: (Fixed Costs + Desired Net Income) / Number of Units + Variable Cost per Unit. Adjusting your unit price and keeping an eye on the market dynamics can help ensure you hit that desired income target!
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