Acme Inc. sells Product Yellow for $25/unit. Variable costs for Product Yellow are $15/unit; fixed costs are $24,500. Acme Inc. desires an income of $10,000 (after taxes) from sales of this product. Its income tax rate is 20%. How many units of Product Yellow must it sell to achieve its target income?

a.

2,875 units

b.

3,700 units

c.

12,500 units

d.

2,042 units