Reference no: EM132942566

Al's Toy Barn manufactures and sells three types of rare collectible dolls for museum display only: Sherriff Woody, Jessie the Cowgirl, and Stinky Pete. The selling prices are $50 for Woody dolls, $30 for Jessie dolls, and only $10 for Stinky Pete. Variable manufacturing costs are $40 per unit for Woody and $15 per unit for Jessie; in addition, Woody and Jessie have variable selling costs of 10% of selling price and $5 per unit, respectively. The contribution margin for Stinky Pete is 75%.

• For every Stinky Pete doll sold, Al sells 5 Sherriff Woody dolls and 4 Jessie dolls. Fixed costs include the rent for the barn in which Al sells his toys and the salaries of the sales staff and are equal to $371,000 in total. For financial reporting purposes, the fixed costs are allocated to the three product lines based on the number of dolls sold. Al's tax rate is 20%.

Problem 1: Calculate the number of units of Stinky Pete dolls that must be sold for Al to earn an after-tax profit of $80,000. (Note: please write your answer in units as a number, rounded to the nearest integer. Do not include a $ sign.)