The break-even point in a cost-volume-profit graph is always found:

Select one:

A.

At 50% of full capacity.

B.

At the volume at which total revenue equals total variable costs.

C.

At the volume at which total revenue equals total fixed costs plus total variable costs.

D.

At the sales volume resulting in the lowest average unit cost.

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If unit sales prices are $7 and variable costs are $5 per unit, how many units would have to be sold to break-even if fixed costs equal $8,000?

Select one:

A.

2,000 units

B.

3,000 units

C.

4,000 units

D.

3,800 units