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 management’s objective?
a. 1,200 units
b. 1,800 units
c. 4,000 units
d. 4,500 units
e. 6,000 units