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ABC Inc. manufactures and sells toys. Price and cost data are as follows: $28.00 $5.50 $6.00 Selling price per unit (package of 2 CDs).............. Variable

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ABC Inc. manufactures and sells toys. Price and cost data are as follows: $28.00 $5.50 $6.00 Selling price per unit (package of 2 CDs).............. Variable costs per unit: Direct material..... Direct labor Artist's royalties................ Manufacturing overhead... Selling expenses.. Total variable costs per unit. Annual fixed costs: Manufacturing overhead... Selling and administrative.... Total fixed costs.......... Forecasted annual sales volume (120,000 units).. $6.00 $3.50 $2.00 $23.00 $170,000 $250,000 $420,000 $3,360,000 How many units would ABC Inc. have to sell in order to earn operating income of $260,000? Select one: a. 140,000 b. 136,000 c. 130,909 d. 161,778

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