Assume the Following Information for Richard Company How Many Units Must Be Sold to Achieve the After-Tax

question 122

Multiple Choice

Assume the following information for Richard Company:
$\begin{array}{ll}\text { Selling price per unit } & \$ 100 \\\text { Variable cost per unit } & \$ 80 \\\text { Total fixed costs } & \$ 80,000 \\\text { After-tax net income } & \$ 40,800 \\\text { Taxrate } & 40 \%\end{array}$
How many units must be sold to achieve the after-tax net income?

• A) 6,040
• B) 7,400
• C) 7,770
• D) 7,800

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