Question: Amber Company had the following information: Activity Driver Unit Variable Cost Level of Activity Driver Units sold $30 -- Setups 1,500 50 Engineering hours 50

Amber Company had the following information:

Activity Driver Unit Variable Cost Level of Activity Driver
Units sold $30 --
Setups 1,500 50
Engineering hours 50 1,200
Other data:
Total fixed costs (traditional) $500,000
Total fixed costs (Activity-based costing) 200,000
Unit selling price 50

How many units need to be sold to produce a before-tax profit of $100,000 using activity-based costing (ABC)?

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