Austin Manufacturing Had the Following Operating Data for the Year

Austin Manufacturing had the following operating data for the year just ended.
Management plans to improve the quality of its only product by: (1) replacing a component that costs $3.50 with a higher-grade component that costs $5.50; and (2) renting a packing machine for $18,000 a year. If the desired target profit is $288,000, the company must sell:

A) 19,300 units
B) 21,316 units
C) 22,500 units
D) 20,842 units

Correct Answer:

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