Benoit Manufacturing Company manufactures and sells parts for various musical gadgets. The following information to a single part which is used in the production of a wind instrument. The business...

Benoit Manufacturing Company manufactures and sells parts for various musical gadgets. The following

information to a single part which is used in the production of a wind instrument. The business earned

Operating Income of $220,000 in 2019, when production was 3,000 units and the president of Darius is under

pressure from shareholders to increase operating income in 2020 and is therefore considering the

implementation of strategies mainly geared at increasing revenues and or decreasing variable costs. Data for

variable cost per unit and total fixed costs were as follows:
Variable expenses per unit: Direct Material $58
Direct Labour $74
Variable Manufacturing Overhead $48
Fixed expenses: Fixed Manufacturing Overhead $215,000

Fixed Selling Costs $65,000
Fixed Administrative Costs $160,000

The President of Benoit is under pressure from shareholders to increase operating income by 50% in

2020. Management expects per unit data and total fixed costs to remain the same in 2020. Compute

the number of units that would have to be sold in 2020 to reach the shareholders desired profit level. Is

this a realistic goal?