1. Frank Corporation manufactures a single product that has a selling price of $35.00 per unit. Fixed expenses total $49,000 per year, and the company must sell 7,000 units to break even. If the company has a target profit of $14,000, sales in units must be:

A. 9,000

B. 7,400

C. 8,364

D. 8,400

2.

A. would decrease.

B. would increase.

C. could increase or decrease.

D. would not change.