Calculate the number of units that should be produced

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Question - A company manufactures and sells a single product. The following data have been extracted from the current year's budget. Sales and production (units) 5,000 Variable cost per unit $50 Fixed cost per unit $70 C/S (contribution/sales) ratio 75% The selling price per unit for next year is budgeted to increase by 8%, whereas both the variable cost per unit and the total fixed costs are expected to increase by 12%. Calculate the number of units that should be produced and sold next year in order to achieve the same profit as in the current year.

Reference no: EM132524776

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