1. Fixed costs are $900,000 and the variable costs are 75% of the unit selling price. What is the break-even point in dollars?

a. $2,100,000

b. $2,700,000

c. $3,600,000

d. $1,200,000

2. Reliable Manufacturing wants to sell a sufficient quantity of products to earn a profit of $100,000. If the unit sales price is $10, unit variable cost is $8, and total fixed costs are $200,000, how many units must be sold to earn income of $100,000?

a. 150,000 units

b. 100,000 units

c. 37,500 units

d. 1,500,000 units