I get 13,378 units as my answer. Is that what you get too? I'm thinking that there is an error in this question because I don't see how 15,000 units is the correct answer.

This came from Chapter 17, question 14 at http://websites.swlearning.com/cgi-wadsworth/course_products _wp.pl?fid=M20b&flag=student&product_isbn_issn=97803 24233100&disciplinenumber=400

The Alma Company had the following income statement for the month of July 2005:

	Alma Company
	Income Statement
	For the Month of July 2005
Sales ($70 x 10,000)		$700,000
Cost of goods sold:
Direct materials ($15 x 10,000)	$150,000
Direct labor ($10 x 10,000)	100,000
Variable factory overhead ($7 x 10,000)	70,000
Fixed factory overhead	220,000	540,000
	------------	------------
Gross profit		$160,000
Selling and administrative expenses:
Variable ($1 x 10,000)	$10,000
Fixed	140,000	150,000
	------------	------------
Operating income		$ 10,000
		========

What is the sales volume required to earn a profit of $135,000?