Narchie sells a single product for $90. Variable costs are 60% of the selling price, and the company has fixed costs that amount to $630,000. Current sales total 15,000 units.

1.) Narchie:

a.) will break-even by selling 17,500 units.

b.) will break-even by selling 5,500 units.

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

d.) will break-even by selling 10,833 units.

e.) will break-even by selling 997,500 units.

2.) In order to produce a target profit of $90,000, Narchie's dollar sales must total:

a.) $20,000.

b.) an amount other than those above.

c.) $81,560.

d.) $1,745,000.

e.) $1,800,000.

3.) If Narchie sells 20,000 units, its safety margin will be:

a.) $1,125,000.

b.) $1,350,000.

c.) an amount other than those above.

d.) $225,000.

e.) $450,000.