The Budgeted Income Statement Presented Below Is for Burkett Corporation

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.
$\begin{array}{ll}\text { Sales \( (50,000 \) units) }&&\$1,000,000\\\text { Costs:}\\\text { Direct materials } & \$ 270,000 \\\text { Direct labor } & 240,000 \\\text { Fixed factory overhead } & 100,000 \\\text { Variable factory overhead } & 150,000 \\\text { Fixed marketing costs } & 110,000 \\\text { Variable marketing costs } & \underline{50,000}& \underline{920,000} \\\text { Pretax income }&& \underline{\$80,000}\end{array}$

A) 81,250.
B) 50,000.
C) 58,621.
D) 53,165.
E) 36,207.

Correct Answer:

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