Forms, Inc

Multiple Choice

Forms, Inc.wants to sell a sufficient quantity of products to earn an after-tax profit of $40,000.If the unit sales price is $10, unit variable cost is $8, and total fixed costs are $80,000, how many units must be sold to earn income of $40,000? Forms, Inc.has a tax rate of 40%.

A) 73,334 units
B) 18,334 units
C) 40,000 units
D) 90,000 units