The budgeted income statement presented below is for Burkett Corporation for the coming fiscal year. Compute the number of units that must be sold in order to achieve a target pretax income of $130,000. Sales (50,000 units) $1,000,000 Costs: Direct materials$270,000 Direct labor 240,000 Fixed factory overhead 100,000 Variable factory overhead 150,000 Fixed marketing costs 110,000 Variable marketing costs 50,000 920,000 Pretax income $80,000
A. 81,250.
B. 53,165.
C. 50,000.
D. 58,621.
E. 36,207.
Answer: D
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