Austin Manufacturing Had the Following Operating Data for the Year

question 87

Multiple Choice

Austin Manufacturing had the following operating data for the year just ended. Management plans to improve the quality of its only product by: (1) replacing a component that costs $3.50 with a higher-grade component that costs $5.50 and (2) renting a packing machine for $18,000 a year.If the desired target profit is $288,000,how many units must the company sell?

• A) 19,300 units.
• B) 20,842 units.
• C) 21,316 units.
• D) 22,500 units.