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