P Co makes two products, P1 and P2. The budgeted details for each product are as follows:

P1P2

$$

Selling Price108

Cost per unit:

Direct materials3.504.00

Direct labour1.501.00

Variable overhead 0.600.40

Fixed overhead1.201.00

Profit per unit 3.201.60

Budgeted production and sales for the year ended 30 November 20X5 are:

Product P110,000 units

Product P212,500 units

The fixed overhead costs included in P1 relate to apportionment of general overhead costs only. However, P2 also includedspecificfixedoverheadstotalling $2,500.

If only product P1 were to bem ade, how many units (to the nearest whole unit) would need to be sold in order to achieve a profit of $ 60,000 each year?

a)26,406 units

b)19,205 units

c)25,625 units

d)18,636 units