Amber Company Had the Following Information How Many Units Need to Be Sold to Produce a }

Multiple Choice

Amber Company had the following information: $\begin{array}{lrr}\text { Activity Driver } & \text { Unit Variable Cost } & \text { Level of Activity Drive } \\\text { Units sold } & \$ 30&-- \\\text { Setups } & 1,500 &50\\\text { Engineering hours } & 50&1,200\\\\\text { Other data: }\\\text { Total fixed costs (traditional) } & \$ 500,000 \\\text { Total fixed costs (Activity-based costing) } & 200,000 \\\text { Unit selling price } & 50\end{array}$
How many units need to be sold to produce a before-tax profit of $100,000 using activity-based costing (ABC) ?

A) 21,750 units
B) 20,900 units
C) 16,800 units
D) 21,500 units