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 $24. The new production line would manufacture up to 19,500 units at a variable cost of $7.80 per unit. Fixed costs would be $72,500. Variable selling and administration expenses would amount to $2.20. Determine the units needed to earn operating income of $75,000.

A) 14,970
B) 13,869
C) 12,758
D) 11,647
E) 10,536