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Question - Carla Vista Company had $212,200 of net income in 2021 when the selling price per unit was $151, the variable costs per unit were $95, and the fixed costs were $571,800. Management expects per unit data and total fixed costs to remain the same in 2022. The president of Carla Vista Company is under pressure from stockholders to increase net income by $84,000 in 2022.
Required -
(a) Compute the number of units that would have to be sold in 2022 to reach the stockholders' desired profit level.
(b) Assume that Carla Vista Company sells the same number of units in 2022 as it did in 2021. What would the selling price have to be in order to reach the stockholders' desired profit level?
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