Company XYZ produces and sells headphones. The company has total fixed costs of $112,000. Each headphone sells for $175 per unit and has variable costs of $125 per unit. Next year XYZ Company wishes to earn an operating income that equals 50% of fixed costs. How many units must be sold to achieve this target income level? (rounded to the nearest number) Select one: a. 2,240 b. 1,120 c. 373 d. 3,360 e. 560 XYZ company is studying the profitability of a change in operation and has gathered the following information. Current Operation: Fixed Costs: $38,000, Selling Price: $16, Variable Cost: $10, and Sales (Units): 9,000. Anticipated Operation: Fixed Costs: $48,000, Selling Price: $22, Variable Cost: $12, and Sales (Units): 6,000. Should XYZ company make the change? Select one: a. Yes, the company will be better off by $6,000. b. No, because sales will drop by 3,000 units. c. No, because the company will be worse off by $4,000. d. No, because the company will be worse off by $22,000 e. It is impossible to judge because additional information is needed