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Question(s) / Instruction(s):

Austin Manufacturing had the following operating data for the year just ended.

Selling Price per unit                       $60 per unit

Variable expense per unit            $22 per unit

Fixed Expense                                   $504,000

Management plans to improve the quality of its only product by: (1) replacing a component that costs $3.50 with a higher-grade component that costs $5.50; and (2) renting a packing machine for $18,000 a year. If the desired target profit is $288,000, the company must sell:

a)            19,300 units

b)            21,316 units

c)            22,500 units

d)            20,842 units

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