Nytre Limited sells executive office chairs for a price of $210 each. The contribution margin ratio of the chairs is 60% and the companys fixed costs for this year are expected to be $80,000. The company has a profit target this year of $100,000 and is considering an improved design which is expected to increase sales.

Question 16:

If the company decides to use the improved design, direct labour costs will increase by $10 per chair. How many chairs must the company now sell to reach its profit target, given the increased labour costs?