CVP Analysis and Price Changes: ??Argentina Partners. ??Argentina ??Partners is concerned regarding the possible impacts

     3-36. CVP Analysis and Price Changes:   Argentina Partners.   Argentina   Partners is concerned regarding the possible impacts of inflation on its   functions. Currently, the organization sells 60,000 units for   $30   per unit. The variable manufacturing expenses are $15, and fixed expenses are   $700,000. Production technicians have recommended   administration   that they predict unit labor costs to increase by 15 % and unit materials   expenses to increase by 10 % in the following year. Out of   the   $15 variable expenses, 50 % are from labor and 25 % are from materials.   Variable overhead expenses are predicted to rise   by   20 %. Sales prices can't rise over 10 %. It's also predicted that fixed   expenses will increase by 5 % as a consequence of   raised   taxes as well as other miscellaneous fixed expenses.   The   organization desires to keep the same amount of profit in real dollar terms.   It's predicted that to achieve this goal, profits   should   rise by 6 % during the year.                     a.   Compute the volume in units and the dollar sales level necessary to maintain   the present profit level, assuming that the   maximum   price increase is implemented.      

     b.   Compute the volume of sales and the dollar sales necessary to provide the 6   percent increase in profits, assuming that the   maximum price increase is   implemented.    

     c. If the   volume of sales were to remain at 60,000 units, what price would be required   to attain the 6 percent increase in profits?