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Dannica Corporation produces products that it sells for $40 each. Variable costs per unit are $25, and annual fixed costs are $360,000. Dannica desires to

Dannica Corporation produces products that it sells for $40 each. Variable costs per unit are $25, and annual fixed costs are $360,000. Dannica desires to earn an after-tax (post-tax) profit of $150,000 for the year. The expected income tax rate is 20%.

Determine the sales volume in units required to earn the desired after-tax profit.

Multiple Choice

  • None of the choices presented are within 100 units of the correct answer.

  • 28,922 Units

  • 34,000 Units

  • 36,500 Units

  • 30,180 Units

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