2C1G CARSON INC. MANUFACTURES ONLY ONE PRODUCT AND IS PREPARING ITS B...

202.

CSO: 2C1a

LOS: 2C1g

Carson Inc. manufactures only one product and is preparing its budget for next year

based on the following information.

Selling price per unit

$ 100

Variable costs per unit

75

Fixed costs

250,000

Effective tax rate

35%

If Carson wants to achieve a net income of $1.3 million next year, its sales must be

a.

62,000 units.

b.

70,200 units.

c.

80,000 units.

d.

90,000 units.