A Company Has Developed a New Product

Multiple Choice

A company has developed a new product. Market price of the product is $10 per unit, variable costs are $6 per unit and total fixed costs are $100 000. Suppose that the company sets a target of $2 of profit per unit. How many units should be produced to meet the target?

A) 10 000
B) 20 000
C) 30 000
D) 40 000
E) 50 000