Exercise 22-13_Naylor Company_CVP Analysis

Naylor Company had $139,470 of net income in 2013 when the selling price per unit was $180, the variable costs per unit were $70, and the fixed costs were $1,477,530. Management expects per unit data and total fixed costs to remain the same in 2014. The president of Naylor Company is under pressure from stockholders to increase net income by $53,740 in 2014.