The president is considering a proposals prepared by members of his staff. For next year, the sales manager would to increase the unit selling price by 20%, increase the sales commission by 9%, and increase advertising by $100,00. Basaed on marketing studies, he is confident this would increase unit sales by one third. What profits would be under the sales manager's proposal? include both Total and Per Unit columns.
Extracted text: WHITNEY COMPANY Income Statement For the Year Ended December 31 Sales (45,000 units at $10 per unit) Less cost of goods sold: $450,000 Direct materials $90,000 .. Direct labor.... Manufacturing overhead Gross margin ...... Less operating expenses: Selling expenses: Variable: 78,300 98,500 266,800 183,200 Sales commissions $27,000 Shipping 5,400 32,400 ... Fixed (advertising, salaries) Administrative: Variable (billing and other) Fixed (salaries and other). 120,000 1,800 48,000 202,200 Net operating loss $ (19,000) All variable expenses in the company vary in terms of unit sold, except for sales commissions, which are based on sales dollars. Variable manufacturing overhead is 30 cents per unit. There were no beginning or ending inventories. Whitney Company's plant has a capacity of 75,000 units per year.