The A Division of ABC Company makes and sells only one product. Annual data on the A Division's single product follow:

Unit Selling Price	$50
Unit Variable Cost	$30
Total Fixed Costs	$150,000
Average Operating Assets	$800,000
Minimum Required Rate of Return	8%

Suppose the manager of A Division desires an annual residual income of $45,000. In order to achieve this, how many units per year should the Division sell?

a.

18,250 units

b.

19,500 units

c.

12,950 units

d.

16,750 units

Clear my choice