The budgeted income statement presented below is for ZERO, Ltd. for the coming fiscal year. Compute the number of units that must be sold in order to achieve a target net income of $200,000.

Sales (15,000 units)

$975,000

Costs:

Direct materials

$285,000

Direct labor

$206,250

Variable factory overhead

$66,000

Fixed factory overhead

$120,000

Variable selling and administrative costs

$46,500

Fixed selling and administrative costs

$92,600

Total costs

$816,350

Net Income

$158,650

a.21,217

b.8,590

c.16,671

d.18,073

e.15,637