TB MC Qu. 9-70 (Algo) Super Sports plans to market a new product ...

Super Sports plans to market a new product for the upcoming college season. Costs associated with the new product, at two different volume ranges, are as follows:

	230,000 units	> 230,000 units
Fixed costs (total)	$ 345,000	$ 488,750
Selling price per unit	$ 20	$ 20
Contribution margin ratio	15%	15%

How many units must be sold in order to reach a before-tax income (_B) of $460,000?

Multiple Choice

• 189,583.

• 426,250.

• 354,250.

• 316,250.

• 268,333.