Question: Alfa Co. produces a product that has a variable cost of $3.00 per unit. The company's fixed costs are $30,000. The product is sold for

Alfa Co. produces a product that has a variable cost of $3.00 per unit. The company's fixed costs are $30,000. The product is sold for $5.00 per unit and the company desires to earn a target profit of $20,000. What is the amount of sales that will be necessary to earn the desired profit?

A.

$75,000

B.

$50,000

C.

$83,333

D.

$125,000

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