Hi I have a profitability change in net income question (what-if analysis) please.

Sales $1,200,000 Per Unit $60

less Variable Costs ($900,000). ($45)

Contribution Margin $300,000. $15

less Fixed Costs are ($240,000).

Net Income $60,000.

Contribution Margin Ratio 25%

Variable Expense Ratio 75%

Break Even Point $16,000

What-if analysis for Target Profit $100,000

If management wants to earn a profit of at least $100,000, how many units must the company sell?

We can apply the appropriate what-if formula below:

No. of units = (Fixed Costs + Target Profit) / CM Ratio

Therefore, to earn at least $100,000 in net income, the company must sell at least 22,666 units.

Is this Formula correct ? If yes, please kindly show the work of plugging in the numbers into the Formula to obtain the 22,666 units.

Thank you. Howard