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For the past year, LaPrade Company had fixed costs of $70,000, a unit variable costs of $32, and a unit selling price of $40. For the coming year, no changes are expected in revenues and costs except that property taxes are expected to increase by $10,000.
Problem a. Determine the break-even sales (in units) for the past year.
Problem b. Determine the break-even sales (in units) for the coming year.
What would the selling price have to be in order to reach the shareholders' desired profit level? (Round answer to 2 decimal places, e.g. 15.25.).
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