Question - Sacramento Company produces toys and other items for use in beach and resort areas. A small, inflatable toy has come onto the market that the company is anxious to produce and sell. The new toy will sell for $4 per unit. Enough capacity exists in the company's plant to produce 20,000 units of the toy each month. Variable costs to manufacture and sell one unit would be $1.25, and fixed costs associated with the toy would total $35,000 per month.
Suppose Sacramento wants to achieve an after-tax profit of $15,000, how many units of inflatable toys do they have to sell? Their expected tax rate is 30%. Please show detailed help with steps and answer.
A) 18,182
B) 12,727
C) 20,000
D) 20,519
E) 30,909