P Co makes two products – P1 and P2 – budgeted details of which are as follows:
The fixed overhead costs included in P1 relate to apportionment of general overhead costs only. However, P2 also includes specific fixed overheads totalling $2,500.
If only product P1 were to be made, how many units (to the nearest unit) would need to be sold in order to achieve a profit of $60,000 each year?
A. 25,625 units
B. 19,205 units
C. 18,636 units
D. 26,406 units