Variable Manufacturing Cost per unit.... $100,000

Fixed Manufacturing Costs.... $462,000

Fixed Selling and Administrative $600,000

Variable Selling and Administrative 10% of Revenues

Units Produced 22,000

Units Sold 20,000

Total Revenue $4,000,000

1) Big Sky's executives receive a bonus based on the net operating income reported on the absorption costing income statement. The executives will receive their bonuses if NOI is greater than $600,000 in 2020. The executives only expect to be able to sell 20,000 units in 2020. If the selling price and cost structure remain the same, how many units would have to be produced to show a NOI of at least $600,000 under absorption costing? Assume there is no beginning inventory in 2020.