Assume fixed cost = $20,000 and variable cost per unit = $7.50. At what price will the firm achieve break-even point if expected sales volume (in units) equals 10,000 units? At what price will the firm achieve a target profit of $20,000?

Assume fixed cost = $20,000 and variable cost per unit = $7.50. At what price will the firm achieve break-even point if expected sales volume (in units) equals 10,000 units? At what price will the firm achieve a target profit of $20,000?

$9.50 selling price to break-even; $11.50 selling price to earn $20,000 profit.

$7.50 selling price to break-even; $9.50 selling price to earn $20,000 profit.

Cannot be determined.

$10 selling price to break-even; $11.50 selling price to earn $20,000 profit.