Drake Company's income statement for the most recent year appears below.
Sales (45,000 units) $1,350,000
Less: variable expenses 750,000
Contribution margin 600,000
Less: fixed expenses 375,000
Net operating income $225,000
Required:
a) Compute the unit contribution margin.
b) Compute the break-even point in dollars.
c) If the company desires a total operating income of $290,000, then how many units must it sell?