Acton company is a price-taker and uses target pricing. refer to the following information: with the current cost structure, acton cannot achieve its profit goals. it will have to reduce either the fixed costs or the variable costs. assuming that variable costs cannot be reduced, what are the target fixed costs per year? assume all units produced are sold.

Miller company’s most recent contribution format income statement is shown below: total per unit sales (20,000 units) $300,000 $15.00 variable expenses 180,000 9.00 contribution margin 120,000 $6.00 fixed expenses 70,000 net operating income $ 50,000 required: prepare a new contribution format income statement under each of the following conditions (consider each case independently): (do not round intermediate calculations. round your "per unit" answers to 2 decimal places.) 1. the number of units sold increases by 15%.