Sales (340,000 units x $120 per unit) 40,800,000

Less costs of goods sold Beginning inventory $ -0-

Add costs of goods manufactured (340,000 x $94.55 per unit) 32,147,000

Cost of good available for sale 32,147,000 Less ending inventory -0- 32,147,000

Gross margin 8,653,000

Less selling and administrative Variable selling and administrative (340,000 x $10 per unit) 3,400,000

Fixed selling and administrative 3,800,000& 7,200,000

Net Income $1,453,000

If sales are 400,000 units for the year and the selling price and cost structure remain the same, estimated how many units would have to be produced in order to show a profit of at least $2,000,000 under absorption costing.