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Malone Printing Company Projected the Following Information for Next Year

Question 32

Multiple Choice

Malone Printing Company projected the following information for next year:  Selling price per unit $75.00 Contribution margin per unit $30.00 Total fixed costs $120,000 Tax rate 40%\begin{array}{lr}\text { Selling price per unit } & \$ 75.00 \\\text { Contribution margin per unit } & \$ 30.00 \\\text { Total fixed costs } & \$ 120,000 \\\text { Tax rate } & 40 \%\end{array}
How many units must be sold to obtain an after-tax profit of $67,500?


A) 3,750 units
B) 5,167 units
C) 5,625 units
D) 7,750 units

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