Data Set

CVP Limited Income Statement for the Year Ended December 31, 2020

Units produced and sold	10,000
Sales	$1,000,000
Direct Material	120,000
Direct Labour	30,000
Variable Manufacturing Overhead	25,000
Fixed Manufacturing Overhead	550,015
Gross Margin	274,985
Fixed Selling General and Administrative Expense	140,000
Variable Selling General and Administrative Expense	40,000
Operating Income	94,985
Interest Expense	66,500
Net Income before Taxes	28,485
Income Tax Expense at 30% Rounded	8,500
Net Income	$19,985

Answer the following question based on the data set above

Question: Assuming there will be no interest expense, determine the necessary units to be produced and sold to earn net income of $150,000. Ignore minor rounding differences - i.e. round up the units to be within the range from $149,950 to $150,050.