Locus Company has total fixed costs of $121,000. Its product sells for $67 per unit and variable costs amount to $57 per unit. Next year Locus Company wishes to earn a pretax income that equals 15% of fixed costs. How many units must be sold to achieve this target income level?

Multiple Choice

• 5,744.

• 12,100.

• 13,915.

• 1,815.

• 20,431