Reese, Inc

Multiple Choice

Reese, Inc. produces pliers. Each pair of pliers sells for $8.00. Variable costs per unit total $5.60 of which $2.50 is for direct materials and $2.10 is for direct labour.
-If total fixed costs are $62,000, contribution margin per unit is $5.00, and targeted after-tax net income is $12,000 with a 40 percent tax rate, how many units must be sold to break even?

A) 16,400
B) 14,800
C) 12,400
D) 11,440