A Manufacturing Company Is Considering Producing a New Product

Multiple Choice

A manufacturing company is considering producing a new product. The variable cost of the new product is $60 per unit, and the total fixed costs are $75,000 for a month. The company could produce 1500 units per month, and sell the product for $125 each. What sales would result in a net income of $16,000?

A) 1200 units
B) 1250 units
C) 1300 units
D) 1375 units
E) 1400 units