American Bicycle Company (ABC) sells its bikes for a price of $750 per unit. Fixed costs are $2 million and variable costs are $400 per bike. If ABC were to sell 10,000 bikes, determine its gain or loss at that level of sales.

Group of answer choices

$750,000 loss.

$1,500,000 gain.

$3,500,000 gain.

$2,000,000 loss.

Using the information from above, determine ABC's break-even point, that level of sales volume where revenues equal costs.

Group of answer choices

3,089 bikes

5,714 bikes

2,992 bikes

1,461 bikes