In 2016, Raleigh Sold 1,000 Units at $500 Each, and Earned

Multiple Choice

In 2016, Raleigh sold 1,000 units at $500 each, and earned net income of $40,000.Variable expenses were $300 per unit, and fixed expenses were $160,000.The same selling price is expected for 2017.Raleigh's variable cost per unit will rise by 10% in 2017 due to increasing material costs, so they are tentatively planning to cut fixed costs by $10,000.How many units must Raleigh sell in 2017 to maintain the same income level as 2016?

A) 882
B) 1,000
C) 1,056
D) 1,118