Omar Company Sales price $50 per unit

Production cost: direct materials $15, direct labor $8, variable overhead $4 and production fixed cost $80,000 per month. Operating expense were $40,000 fixed, $3 variable per unit and income tax expense 20%. If target profit $40,000 total sales will be

a.

$375,000

b.

$425,000

c.

$566,667

d.

$850,000

e.

$725,000