A division of a corporation produces "Personal Income Tax" diaries. Each diary sells for $8. The monthly fixed costs incurred by the division are $20,000, and the variable cost of producing each diary is $3. What should be the level of sales in order for the division to realize a 15% profit over the cost of making the diaries?

Question

A division of a corporation produces "Personal Income Tax" diaries. Each diary sells for $8. The monthly fixed costs incurred by the division are $20,000, and the variable cost of producing each diary is $3. What should be the level of sales in order for the division to realize a 15% profit over the cost of making the diaries?
		
a. The level of sales should be 8,952 units.
		
b. The level of sales should be 4,553 units.
		
c. The level of sales should be approximately 9,222 units.
		
d. The level of sales should be 5,055 units.