1. Panda Company manufactures and sells a single product. Price and cost data regarding this product are given below. How many units need to be sold to earn an annual net operating income equal to 10% of sales?

a-44,000 units

b-47,500 units

c-53,200 units

d-54,500 units

Item: Unit Selling Price Variable Manufacturing Costs Variable Selling and Administrative Expenses Fixed Manufacturing Overhead Fixed Selling and Administrative Expenses Amount $40 per unit $20 per unit $6 per unit $208,000 per year $324,000 per year