Rothe Company manufactures and sells a single product that it sells for $90 per unit and has a contribution margin ratio of 35%.The company's fixed expenses are $46,800.If Rothe desires a monthly target net operating income equal to 15% of sales,the amount of sales in units will have to be (rounded):

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Selling price = $90 per unit
CM ratio = 0.35
Fixed expenses = $46,800
Target profit = 0.15 F1F1F1S1F1F1F10 Dollar sales
Dollar sales to attain a target profit = (Target profit + Fixed expenses)F1F1F1S1F1F1F10 CM ratio
Dollar sales = (0.15 F1F1F1S1F1F1F10 Dollar sales + $46,800)F1F1F1S1F1F1F10 0.35
0.35 F1F1F1S1F1F1F10 Dollar sales = 0.15 F1F1F1S1F1F1F10 Dollar sales + $46,800
0.20 F1F1F1S1F1F1F10 Dollar sales = $46,800
Dollar sales = $46,800 F1F1F1S1F1F1F10 0.20 = $234,000
Unit sales = Dollar sales F1F1F1S1F1F1F10 Selling price = $234,000 F1F1F1S1F1F1F10 $90 per unit = 2,600 units

Rothe Company Manufactures and Sells a Single Product That It