A Company Reports the Following Information for Its First Year

Multiple Choice

A company reports the following information for its first year of operations.
$$\begin{array} { l l } \text { Units produced this year } & ? \text { units } \\\text { Units sold this year } & 1,500 \text { units } \\\text { Direct materials } & \$ 9 \text { per unit } \\\text { Direct labor } & \$ 5 \text { per unit } \\\text { Variable overhead } & \$ 7 \text { per unit } \\\text { Fixed overhead } & \$ 24,000 \text { in total }\end{array}$$
If the company's cost per unit of finished goods using absorption costing is $27, how many units were produced?

A) 4,000 units.
B) 3,600 units.
C) 1,846 units.
D) 2,667 units.
E) 2,000 units.