Porter Productions Sells Video Tapes for $15

Multiple Choice

Porter Productions sells video tapes for $15.00 each. Their variable cost per unit is $9.00. In addition, they incur $180,000 in fixed costs each year. How many units will Porter have to produce and sell in order to generate an operating income (revenues minus expenses) of $54,000?

A) 9,000 units
B) 18,000 units
C) 30,000 units
D) 39,000 units
E) 54,000 units