Assume Total Fixed Costs of $160,000, Variable Costs Per Unit

Multiple Choice

Assume total fixed costs of $160,000, variable costs per unit of $6, and contribution margin per unit of $4.What are the sales dollars required to earn a target net income of $50,000 assuming a tax rate of 20%?

A) $350,000
B) $556,250
C) $525,000
D) $500,000