Gross profil determination. Tho Davidson Corporation manufactures a kitchon appllance to sell for S280. Last year the company sold 2,000 of these appliances, realizing a gross profit of 25% of the cost of goods sold. Of this total cost of goods sold, materials accountod for 40% of the total and factory overhead for 15%. During the coming yoar, it is expected that materials and labor costs will each increase 25% per unit and that factory overhead will increaso 121/2% per unit. To mcet these rising. costs, a new sales prico must be sot. Requlred: The number of units that must bo sold to realize the same tota! grozs profit in the coming year as realized last year if the now selling price is set at: (1) $300;(2)$525;(3)$350.

Q&A Education