Unfortunately, by October of the next year it had become clear that the company would not be able to make the $4,800.000 target profit. In fact, it looked like the company would wind up the year as originally planned, with sales of 200,000 units, no ending inventories, and a profit of $4,000,000.
Several managers who were reluctant to lose their year-end bonuses approached Michael and suggested that the company could still show a profit of $4,800,000. The managers argued that at the present rate of sales, there was enough capacity to produce tens of thousands of additional DVD drives for the warehouse. Overtime costs might have to he incurred, but all of this additional cost would he assigned to the DVD drives in ending inventory.
If sales are 200.000 units for the year and the selling price and cost structure remain the same, how many units would have to be produced to show a profit of at least $4,800,000 under absorption costing? (Round your answer up to the nearest whole unit.)