Response to the following problem:
Seabold Interiors sold 18,400 yards of wallpaper last year at a contribution margin of $3.50 per yard and incurred $49,400 in total fixed costs. This year, contribution margin per yard is expected to increase to $4, and fixed costs are expected to increase to $58,000. How many units must be sold this year to earn the same operating income as was earned last year?
a. 16,900.
b. 17,500.
c. 18,250.
d. 20,200.
e. None of the above.
PLEASE SHOW CALCULATIONS ON HOW YOU ARRIVED AT YOUR ANSWER.