13

The budgeted income statement presented below is for Burkett Corporation for the coming fiscal year. Compute the number of units that must be sold in order to achieve a target pretax income of $130,000.

Sales (50,000 units)				$	1,000,000
Costs:
Direct materials	$	270,000
Direct labor		240,000
Fixed factory overhead		100,000
Variable factory overhead		150,000
Fixed marketing costs		110,000
Variable marketing costs		50,000			920,000
Pretax income				$	80,000