Narchie sells a single product for $40. Variable costs are 80% of the selling price, and the company has fixed costs that amount to $176,000. Current sales total 18,000 units.

1. Narchie:

a. will break-even by selling 15,333 units.

b. will break-even by selling 10,000 units.

c. cannot break-even because it loses money on every unit sold.

d. will break-even by selling 1,002,000 units.

e. will break-even by selling 22,000 units.

2. In order to produce a target profit of $20,000, Narchie's dollar sales must total:

a. $24,500.

b. $925,000.

c. $980,000.

d. an amount other than those above.

e. $11,560.

3. If Narchie sells 24,500 units, its safety margin will be:

a. $100,000.

b. $600,000.

c. $500,000.

d. $200,000.

e. an amount other than those above.