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problem 1: Company XYZ produces and sells headphones. The company has total fixed costs of $112,000. Each headphone sells for $35 per unit and has variable costs of $25 per unit. Next year XYZ Company wishes to earn an operating income that equals 10% of fixed costs. How many units must be sold to achieve this target income level? (rounded to the nearest number)
Select one:
a. 2,053
b. 10,080
c. 12,320
d.1,867
e.11,200
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