A. 55 units
B. 45 units
C. 35 units
D. 25 units
✅ The correct answer is option D.
Required units = ( fixed cost + operating income) ÷ Contribution margin per unit
= ($20000 + $10000) ÷ $1200 = 25 units.
Required units = ( fixed cost + operating income) ÷ Contribution margin per unit
= ($20000 + $10000) ÷ $1200 = 25 units.