Draco Company charges a selling price of $25 per unit for its single product, incurs variable costs of $17 per unit, and total fixed costs of $140,000.

What sales volume is necessary to earn a net income after tax of $36,000, assuming a tax rate of 25%?

Select one:

a. 17,500

b. 21,500

c. 23,500

d. 32,000

e. None of the above