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I Believe in You (IBY) sells each unit for $320 a unit. The company has total per unit variable costs of $180, and total fixed
I Believe in You (IBY) sells each unit for $320 a unit. The company has total per unit variable costs of $180, and total fixed costs of $215,000. IBY desires an after-tax profit of $400,000, and has an average effective tax rate of 20%. How many units must IBY sell to reach their after-tax target profit?
A) 1,536 units
B) 2,234 units
C) 4,393 units
D) 5,108 units
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