Target Profit Calculation Steps:

• Contribution margin per unit: $50 selling price -$30 variable cost = $20.
• Total costs to cover: $50,000 fixed costs +$30,000 target profit = $80,000.
• Units required: $80,000 ÷$20 contribution margin = 4,000. Why D is correct:
• Applies the target profit formula: (fixed costs + target profit) ÷ contribution margin per unit = 4,000 units. Why the others are wrong:
• A: 6,400 overestimates by misapplying break-even (2,500 units) without adding profit correctly.
• B: 15,000 ignores contribution margin, possibly confusing with total revenue needs.
• C: 25,000 divides fixed costs by selling price alone, omitting variables and profit.

Final answer: D