1. Answer the following questions using the information below: iPhone Manufacturing presents the following information:

   Tax rate

   40%

   Total fixed costs

   $80,000

   Selling price

   $120 per unit

   Variable costs

   $80 per unit

   What is the number of units that must be sold to earn an after-tax net income of $42,000?

   		1,875 units
   		3,750 units
   		4,625 units
   		3,050 units