Carlson Inc. manufactures baby cribs and currently has fixed costs of $50,000 and a sales price per unit of $315. Carlson”s major raw materials supplier announced it will be increasing its prices, therefore Carlson is expecting the variable costs of its baby cribs to increase from $90 to $115. Carlson is going to hold the line on the selling price of its cribs but plans to cut fixed costs by $5,000. If Carlson currently has monthly net income of $40,000 on sales of 400 cribs, what increase in units sold will Carlson need to maintain the same level of income?
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