Your answer is correct. Compute the quantity of units that would have to be sold in 2025 to reach management's desired net income level. Units sold in 2025 \( \square \) 34380 units eTextbook and Media Solution Attempts: 1 of 1 used (c) Assume that Blossom sells the same quantity of units in 2025 as it did in 2024. What would the unit selling price have to be in order to reach the target net income? Use the mathematical equation. (Round answer to 2 decimal places, e.g. 52.75.) Selling price \$ \( \square \)
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To achieve the desired net income, let's start by understanding the costs involved. If we maintain the number of units sold at 34,380, we need to figure out the total cost and then add the target net income. For instance, if the total fixed costs are $200,000 and the variable cost per unit is $5, the calculation of the necessary selling price becomes crucial. Selling price = (Total Fixed Costs + Total Variable Costs + Target Net Income) / Units Sold. By inputting these figures and solving for the selling price, you can determine the amount that needs to be charged per unit to hit those ambitious profit goals—let's say it turns out to be $15.25! If you're up for a challenge, think about adjusting your variables: how would changing the number of units sold or costs affect your success? Understanding these dynamics might just give you a leg up in your business decisions. Happy calculating!