Contribution margin for profit increase Steps:

• Calculate contribution per unit: $80 -$28 = $52.
• Identify additional contribution needed: $25,000 (fixed costs unchanged).
• Divide target by contribution per unit: $25,000 ÷$52 ≈ 481 units.
• Choose closest option among choices: 500 units.

Why C is correct:

• Requires additional contribution of $25,000 per the formula (target profit increase ÷ contribution margin per unit); 500 units yield$26,000 ($52 × 500), the nearest match to achieve the goal.

Why the others are wrong:

• A. 325 units yield $16,900 ($52 × 325), below $25,000 needed.
• B. 362 units yield $18,824 ($52 × 362), below $25,000 needed.
• D. 813 units yield $42,276 ($52 × 813), far exceeding $25,000 needed.

Final answer: C