Omar Company Sales price $50 per unit

Production cost: direct materials $20, direct labor $8, variable overhead $4 and production fixed cost $70,000 per month. Operating expense were $20,000 fixed, $3 variable per unit and income tax expense 20%. If target profit 12% total sales will be

a.

$2,400,000

b.

$1,600,000

c.

$600,000

d.

$480,000

e.

$800,000