The following is Addison Corporation's contribution format income statement for last month:
Sales ....................$1,000,000
Variable expenses........... 700,000
Contribution margin......... 300,000
Fixed expenses.............. 180,000
Net operating income........ 120,000
The company has no beginning or ending inventories. A total of 20,000 units were produced and sold last month.
How many units would the company have to sell to attain the target profit of $150,000?
a.25,000
b.26,667
c.22,000
d.37,500