Ayushito Poorma Empire, a T-shirt retailer, is planning to sell 500 T-shirts for $20 each at the next Olympics. This will generate a contribution margin ratio of 70%.

If this level of sales will signify breakeven for Ayushito Poorma Empires operations at the Olympics, what are the retailers fixed costs associated with selling at the Olympics.

Select one:

a. $7,000.

b. $8,000.

c. $5,000.

d. $6,000.