ABC Inc. manufactures and sells toys. Price and cost data are as follows: $23.00 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). $4.00 $4.00 $4.00 $3.00 $2.50 $17.50 $188,000 $272,000 $460,000 $2,760,000 How many units would ABC Inc. have to sell in order to earn operating income of $260,000? Select one: a. 136,364 b. 115,972 c. 136,000 d. 130,909