Unformatted text preview: were $30, and the fixed costs were $300,000. Management expects per unit data and total fixed costs to remain the same in 2009. The president of Taylor Toy Train Company is under pressure from stockholders to increase net income by $40,000 in 2009. 4a) Compute the number of units sold in 2008. 4b) Compute the number of units that would have to be sold in 2009 to reach the stockholders’ desired profit level. 4c) Assume that Taylor sells the same number of units in 2009 as it did in 2008. What would the selling price have to be in order to reach the stockholders’ desired profit level? Month Amount Units Produced Cost Per Unit Type of Costs? Costs A November $30,000 30,000 December 45,000 50,000 Costs B November $60,000 30,000 December 100,000 50,000 CM $ CM per unit CM Ratio BE $ BE units Margin of Safety $ Margin of Safety ratio...
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- Spring '11
- Toy Train Company, Taylor Toy Train