A company has a break-even point of 10,000 unit sales. Its fixed costs are $50,000. How many units must the company sell to earn $10,000 in operating profits?

Select one:

A.

Less than 12,000 units

B.

12,000 units

C.

More than 12,000 units

D.

None of these answers are correct

You are analyzing your company to determine its break-even point. Unit sales are $100 per unit and the company has the following costs:

Rent $100,000

Factory labor $8 per unit

Executive salaries $120,000

Raw material $4.00 per unit Based upon the information above, the firm's break-even point is:

Select one:

A.

Less than 2,500 units

B.

2,500 units

C.

More than 2,500 units

D.

There is not enough information to determine the break-even point