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Problem 1: Pina Colada Company had $151,400 of net income in 2016 when the selling price per unit was $152, the variable costs per unit were $92, and the fixed costs were $574, 800. Management expects per unit data and total fixed costs to remain the same in 2017. The president of Pina Colada Company is under pressure from stockholders to increase net income by $65,700 in 2017. Compute the number of units that would have to be sold in 2017 to reach the stockholders' desired profit level.
Financial Statement Analysis and Preparation
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