Narchie sells a single product for $40. Variable costs are 80% of the selling price, and the company has fixed costs that amount to $152,000. Current sales total 16,000 units.

1. Narchie:

will break-even by selling 999,000 units.

will break-even by selling 19,000 units.

will break-even by selling 7,000 units.

will break-even by selling 12,333 units.

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

2.After the break -even point each unit that Narchie sells will:

decrease profit by $10.

increase profit by $8.

increase profit by $32.

increase profit by some other amount.

increase profit by $40.

3.In order to produce a target profit of $28,000, Narchie's dollar sales must total:

$900,000.

$19,560.

an amount other than those above.

$22,500.

$845,000.

4.If Narchie sells 22,500 units, its safety margin will be:

$840,000.

$280,000.

$140,000.

an amount other than those above.

$700,000.