Daybreak Corporation manufactures and sells two products: A and B. The operating results of the company are as follows:

Product A Product B

Sales in units 3,000 4,000

Sales price per unit $12 $7

Variable costs per unit 6 4

In addition, the company incurred total fixed costs in the amount of $10,000. Refer to Daybreak Corporation. How many units would the company need to sell to produce a before-tax profit of $20,000?

a. 6,250

b. 6,000

c. 6,923

d. 7,000