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Pippa's Pilot Headware, Inc

Accounting

Pippa's Pilot Headware, Inc. produces pilot headware. Sales have been very erratic, with some months showing a profit and some moths showing a loss. The company's contribution format income statement for the most recent month is given below: Sales (15,000 units at $85 per unit) Variable expenses Contribution Margin Fixed expenses Net operating Income 1.275.000 840,000 435,000 270,000 165,000 Required: Refer to the original data. The company's advertising agency thinks that a new package would help sales. The new package being proposed would increase packaging costs by adding $13.00 per unit. Assuming no other changes, how many units would have to be sold monthly to earn a target profit of $225,000? (Round to 2 decimal places)

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