Drake Company”s income statement for the most recent year appears below:
|
Sales (26,000 units) |
$650,000 |
|
Less: Variable expenses |
442,000 |
|
Contribution margin |
208,000 |
|
Less: Fixed expenses |
234,000 |
|
Net operating loss |
$ (26,000) |
If the company desires a net operating income of $20,000, the number of units needed to be sold is:
A) 28,500
B) 31,000
C) 31,750
D) 26,500