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Reliable Furniture manufactures recliners selling for $500 each. Variable costs per unit are $175 for...

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Accounting

Reliable Furniture manufactures recliners selling for $500 each. Variable costs per unit are $175 for direct material, $125 for direct labor, and $50 for variable overhead. Fixed costs are $300,000 for selling and administrative costs. The company wants to earn a before-tax profit of $600,000. How many recliners must be sold to accomplish managements objective?

a. 1,200 units

b. 1,800 units

c. 4,000 units

d. 4,500 units

e. 6,000 units

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