For the following questions, circle the best response. Answers are at the end of this chapter.
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? (Hint: Use the expanded contribution margin model described in this chapter.)
a. 16,900.
b. 17,500.
c. 18,250.
d. 20,200.
e. None of the above.
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