Kerensky Corporation, a wholesale company, has provided the following data:
|
Sales per period |
1,000 units |
|
Selling price . |
$35 per unit |
|
Variable production cost |
$15 per unit |
|
Selling expenses |
$5,000 plus 5% of selling price |
|
Administrative expenses |
$3,000 plus 10% of selling price |
The number of units needed to achieve a target net operating income of $20,000 is closest to:
A) 1,404 units
B) 542 units
C) 1,898 units
D) 1,361 units