Andrew Company Has the Following Information If the Tax Rate Decreases to 30%, _ Fewer Units

Multiple Choice

Andrew Company has the following information: $\begin{array}{ll}\text { Income tax rate } & 40 \% \\\text { Selling price per unit } & \$ 7.50 \\\text { Variable cost per unit } & \$ 2.50 \\\text { Total fixed costs } & \$ 100,000\end{array}$ If the tax rate decreases to 30%, _ fewer units can be sold to retain the same net income of $42,000.

A) 1,000 units
B) 32,000 units
C) 34,000 units
D) 2,000 units