1. Blanchard Company manufactures and sells dresses at a variable cost of $30 each and a fixed cost of x. It can sell 6,000 dresses at a selling price of $50 to earn an operating income of $20,000 or it can sell 3,500 dresses at a selling price of $60 and another 2,000 dresses at a selling price of $40. Which alternative should Blanchard choose?