ABC company manufactures a single product. Estimated cost data regarding the product, and other information for the product and the company are as follows:
|
sales price per unit
|
$40
|
|
Total variable production cost per unit
|
$22
|
|
Sales commission (computed on sales revenue)
|
5 %
|
|
Fixed costs and expenses:
|
|
|
Manufacturing overhead
|
$5,598,720
|
|
General and administrative
|
$3,732, 480
|
|
Effective income tax rate
|
40%
|
Compute the number of units the company must sell in the coming year in order to reach the breakeven point
A. 972,000 Units
B. 583,200 Units
C. 388,000 Units
D. 518,400 Units