Use the Following Information to Answer Questions

Multiple Choice

Use the following information to answer questions
Reliable Furniture manufactures recliners selling for $500 each. Variable costs per unit are $175 for direct material, $125 for direct labor, $35 for variable production overhead, and $15 for variable selling and administrative costs. Annual fixed costs are $200,000 for production overhead and $100,000 for selling and administrative costs. The company applies fixed production overhead to recliners based on a capacity of 20,000 units per year.
-The company wants to earn an after-tax profit of $315,000. Reliable's tax rate is 40%. How many recliners must be sold to accomplish management's objective?

A) 2,100 units
B) 4,100 units
C) 5,323 units
D) 5,500 units
E) 7,250 units