Wang Co. manufactures and sells a single product that sells for $450 per unit; variable costs are $270 per unit. Annual fixed costs are $800,000. Current sales volume is $4,200,000. Management targets an annual pre-tax income of $1,125,000. Compute the dollar sales to earn the target pre-tax net income.
A. $4,812,500.
B. $2,612,613.
C. $3,378,378.
D. $2,991,004.
E. $5,640,000.
Answer: A
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