How many hammers will have to be sold in June to maintain the same level of net income? 1 answer below »

Lagerfeld Company reported the following results from the sale of 5,000 hammers in May: sales $200,000, variable costs $120,000, fixed costs $60,000, and net income $20,000. Assume that Lagerfeld increases the selling price of hammers by 10% on June 1. How many hammers will have to be sold in June to maintain the same level of net income?

a. 4,000.

b. 4,300.

c. 4,500.

d. 5,000.