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

P1P2

$$

Selling Price129.6

Cost per unit:

Direct materials4.24.8

Direct labour1.81.2

Variable overhead0.720.48

Fixed overhead1.44 1.2

Profit per unit3.841.92

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

Product P112,000 units

Product P215,000 units

The fixed overhead costs included in P1 relate to apportionment of general overhead costs only. However, P2 also included specific fixed overheads totalling $ 3,000.

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 $ 72,000 each year?

a)31,687 units

b)30,750 units

c)19,750 units

d)20,318 units