1. Burger Bobs Boathouse sells only one product. 7,000 units were sold in year, resulting in $70,000 of sales revenue. Variable costs were $28,000 for the year, and fixed costs were $42,000. The Break-even point in volume is:
   1. 3,000 units
   2. 2,797 units
   3. 2,000 units
   4. 7,000 units

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2. How many units would have to be sold to yield a target operating income of $18,000, assuming variable costs are $15 per unit, total fixed costs are $2,000, and the unit selling price is $20?

1. 4,800 units
2. 4,400 units
3. 4,000 units
4. 1,600 units