ABC Inc. manufactures and sells toys. Price and cost data are as follows:

Selling price per unit (package of 2 CDs)......................................	$26.00
Variable costs per unit:
Direct material...............................................................................................................	$6.50
Direct labor......................................................................................................................	$5.00
Artist's royalties..............................................................................................................	$5.00
Manufacturing overhead..........................................................................................	$3.50
Selling expenses............................................................................................................	$1.00
Total variable costs per unit............................................................	$21.00
Annual fixed costs:
Manufacturing overhead..........................................................................................	$188,000
Selling and administrative.......................................................................................	$270,000
Total fixed costs................................................................................	$458,000
Forecasted annual sales volume (120,000 units).........................	$3,120,000

How many units would ABC Inc. have to sell in order to earn operating income of $260,000?