Homework Answers
| Current sales | 2000000 | =4000*500 |
| Less: Variable costs | 880000 | =4000*220 |
| Less: Fixed costs | 1000000 | |
| Current operating income | 120000 | |
| Fixed costs | 1080000 | =1000000+80000 |
| Add: Operating income | 120000 | |
| Required Contribution margin | 1200000 | |
| Divide by Contribution margin per unit | 305 | =525-220 |
| Units to be sold | 3935 | |
| Option C 3,935 is correct |
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