Steel Parts produces parts for the automobile industry. The company has monthly fixed expenses of $650,000 and a contribution margin of 95% of revenues. feels like he's in a giant squeeze play: The automotive manufacturers are demanding lower prices, and the steel producers have increased raw material costs. contribution margin has shrunk to 65% of revenues. The company's monthly operating income, prior to these pressures, was $347,500.

Begin by identifying the formula to compute the sales in units at various levels of operating income using the contribution margin approach.

(

Fixed expenses

+

Operating income

)

Contribution margin ratio

=

Target sales in dollars

Part 2

(Round your answer up to the nearest whole dollar.)

Graham must now achieve sales of

to maintain the same level of profit.