CVP Analysis: Breakeven in Units and Target Profit (25 points)

The Barrister Mug Company manufactures plastic mugs that sell to wholesalers for $4.60 each. Variable and fixed costs are as follows:

Variable Costs per Unit				Fixed Costs per Month
Manufacturing:
Direct materials	$0.69			Factory overhead	$ 9,200
Direct labor	0.81			Selling and adm.	6,900
Factory overhead	0.57	$2.07		Total	$16,100
Selling and adm.		0.46
Total		$2.53

Barrister Mug produced and sold 11,500 cups during April 2016. There were no beginning or ending inventories.

Required:

1. What sales volume in units is required to earn a monthly before-tax (operating) income of $16,800?