Blossom Company had \( \$ 149,400 \) of net income in 2024 when the unit selling price was \( \$ 150 \), the unit variable costs were \( \$ 90 \), and the fixed costs were \( \$ 570,600 \). Management expects per unit data and total fixed costs to remain the same in 2025. The president of Blossom Company is under pressure from stockholders to increase net income by \( \$ 60,000 \) in 2025. (a) Your answer is correct. Compute the number of units sold in 2024. Sales in 2024 \( \square \) 12000 units eTextbook and Media Attempts: 1 of 10 used (b) Your answer is incorrect. Compute the number of units that would have to be sold in 2025 to reach the stockholders' desired net income. Units needed in 2025 \( \square \) units

To find the number of units sold in 2024, we can use the following equation for net income: \[ \text{Net Income} = \text{Sales} - \text{Variable Costs} - \text{Fixed Costs} \] Given: - Selling Price per unit = \( \$150 \) - Variable Cost per unit = \( \$90 \) - Fixed Costs = \( \$570,600 \) - Net Income = \( \$149,400 \) Let \( Q \) be the quantity of units sold. The Sales revenue can be expressed as \( 150Q \) and the Variable Costs as \( 90Q \). Therefore, we can set up the following equation: \[ 149,400 = 150Q - 90Q - 570,600 \] \[ 149,400 = 60Q - 570,600 \] Rearranging gives: \[ 60Q = 149,400 + 570,600 \] \[ 60Q = 720,000 \] \[ Q = \frac{720,000}{60} = 12,000 \] So, the number of units sold in 2024 is **12,000 units**. --- For 2025, the company aims to increase its net income by \( \$60,000 \). Therefore, the new target net income would be: \[ 149,400 + 60,000 = 209,400 \] Using the same format as before, we need to find the quantity \( Q \) to reach this new income level: \[ 209,400 = 150Q - 90Q - 570,600 \] \[ 209,400 = 60Q - 570,600 \] Rearranging gives: \[ 60Q = 209,400 + 570,600 \] \[ 60Q = 780,000 \] \[ Q = \frac{780,000}{60} = 13,000 \] Thus, the number of units that would have to be sold in 2025 to reach the stockholders' desired net income is **13,000 units**.