Tiramisu Company Projected the Following Information for Next Year How Many Units Must Be Sold to Obtain an After-Tax

Multiple Choice

Tiramisu Company projected the following information for next year: $\begin{array} { l } \text {Selling price per unit }&\$60.00\\ \text {Contribution margin per unit }&\$30.00\\ \text {Total fixed costs }&\$100,000\\ \text {Tax rate }&20\%\\\end{array}$

How many units must be sold to obtain an after-tax profit of $40,000?

A) 3,750 units
B) 5,625 units
C) 5,000 units
D) 5,167 units