The Blanket Company $($TBC$)$ manufactures two types of blankets. One is made of nylon. The other is made of wool. The budgeted per$-$unit contribution margin for each product follows.

Nylon Wool

Sales price $ $142$ $ $194$

Variable cost per unit $(77)(74)$

Contribution margin per unit $ $65$ $ $120$

TBC expects to incur annual fixed costs of $$730,000.$ The relative sales mix of the products is $80$ percent for Nylon and $20$ percent for Wool.

Required

Determine the total number of products $($units of Nylon and Wool combined$)$ TBC must sell to earn a $$106,000$ profit.

How many units each of Nylon and Wool blankets must TBC sell to earn a $$106,000$ profit?

Prepare an income statement using the contribution margin format.