John Company Has the Following Information Assume the Tax Rate Decreases to 30

Multiple Choice

John Company has the following information:
$\begin{array}{ll}\text { Income taxrate } & 40 \% \\\text { Selling price per unit } & \$ 7.50 \\\text { Variable cost per unit } & \$ 2.50 \\\text { Total fixed costs } & \$ 100,000 \\\text { Target after-tax net income } & \$ 42,000\end{array}$
Assume the tax rate decreases to 30%.How many fewer units can be sold to retain the same after-tax net income of $42,000?

A) 1,000
B) 2,000
C) 32,000
D) 34,000