Question
Test Company reported the following income statement for the most recent period. Sales (6,000 units) $120,000 Variable expenses 72,000 Contribution margin 48,000 Fixed expenses 30,000
Test Company reported the following income statement for the most recent period.
Sales (6,000 units) | $120,000 |
Variable expenses | 72,000 |
Contribution margin | 48,000 |
Fixed expenses | 30,000 |
Operating income | $18,000 |
Test Companys sales manager proposed holding a Holiday Sale. Prices would be discounted 5% and an additional $1,000 would be used for advertising to promote the event. Determine the number of units Test Company must sell during the promotion to continue earning $18,000.
Note: Give your answer using commas. Do not include the word units.
Example: 12,345
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