A Manufacturing Company Is Studying the Feasibility of Producing a New

Multiple Choice

A manufacturing company is studying the feasibility of producing a new product. The selling price is expected to be $105. The new production line would manufacture up to 825,000 units at a variable cost of $64 per unit. Fixed costs would be $1,515,000. Variable selling and administration expenses would amount to $18. Determine the units needed to earn operating income of $4,000,000.

A) 241,571
B) 166,276
C) 527,685
D) 239,783
E) 313,913