+598 To maintain the net income of $120,000. At the forecast annual sales of 8000 units at $100 per unit. With $680,000 total cost. and $60 is variable cost per unit.
What has to be the new selling price to maintain the net income of $120,000. (original selling price was $100).
Any help would be greatly appreciated, Thanks
But, I don't see any "New Conditions" in your quaestion!!. By the way, I think I mistook the exchange rate to be $1CDN=.90USD, but it apparently is other way round. If that is the case, unfortunately you will have to re-do all the calculations about converting $600,000USD into Canadian dollars. Also, you have to re-calculate the GIC investments that we did earlier. P.S., If that's the case, then you just divide $600,000/.90=$666,666.67 CDN.
