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Minden Company manufactures a high-quality wooden birdhouse that sells for $30 per unit. Variable costs are...

Minden Company manufactures a high-quality wooden birdhouse
that sells for $30 per unit. Variable costs are $6 per unit
and fixed costs total $180,000. During 2018, Minden Company
sold 50,000 birdhouses to customers. The president of Minden
Company believes the following changes should be made in 2019:

1. the selling price of the birdhouse should be increased
   by 20%

2. increase advertising by $30,000

A.)Assume these changes are made. Calculate the number of units
Minden Company must sell in 2019 in order to break-even

B.) Assume these changes are made. Calculate the number of units Minden Company must sell in 2019 in order to earn a target profit equal to 25% of sales.

C.) Assume these changes are made. Calculate the number of units Minden Company must sell in 2019 in order to earn a net income that is 80% greater than the net income earned in 2018.

Need help with parts a,b and c. Thank you

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Expert Solution

ekkarill92 answered 1 year ago
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