Locus Company has total fixed costs of $112,000. Its product sells for $35 per unit and variable costs amount to $25 per unit. Next year Locus Company wishes to earn a pretax income that equals 10% of fixed costs. How many units must be sold to achieve this target income level?

A. 8,214.
B. 14,080.
C. 12,320.
D. 1,120.
E. 11,200.


Answer: C

Business

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