If fixed costs are $300,000 and the unit contribution margin is $5, what amount of units must be sold in order to realize an operating income (target) of $50,000?

60,000

50,000

70,000

58,333

Salter Inc.'s unit selling price is $50, the unit variable costs are $35, fixed costs are $125,000, and current sales are 10,000 units. How much will operating income change if sales increase by 5,000 units?

$175,000 increase

$75,000 increase

$150,000 decrease

$150,000 increase