Question - 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