What sales volume is necessary to earn a net income

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Draco Company charges a selling price of $25 per unit for its single product, incurs variable costs of $17 per unit, and total fixed costs of $140,000.

Question 1: What sales volume is necessary to earn a net income after tax of $36,000, assuming a tax rate of 25%?

Select one:

Option a. 17,500

Option b. 21,500

Option c. 23,500

Option d. 32,000

Option e. None of the above

Reference no: EM132572176

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