The East Division of Abel Company reported the following information for 2025: Variable costs per unit Average operating assets. Return on investment .. Margin ... Minimum required rate of return Sales (in units) $10 $425,000 18% 30% 11% 15,000 units The management of Abel Company is beginning to budget for 2026 and would like answers to some what-if scenarios. Calculate the number of units the East Division needed to sell in 2025 in order for its residual income to be 50% larger than what was reported.

The East Division of Abel Company reported the following information for 2025: Variable costs per unit.. Average operating assets Return on investment... Margin ..... Minimum required rate of return Sales (in units) ... $10 $425,000 18% 30% 11% 15,000 units The management of Abel Company is beginning to budget for 2026 and would like answers to some what-if scenarios. Calculate the number of units the East Division needed to sell in 2025 in order for its residual income to be 50% larger than what was reported.