Use the information below to answer the following two questions:

Star Jewelry sells 500 units resulting in $75,000 of sales revenue, $28,000 of variable costs, and $18,000 of fixed costs. The company's effective tax rate is 25%.

1) Breakeven point in units is ________.

A) 28,723 units

B) 120 units

C) 187 units

D) 192 units 14)

2) The number of units that must be sold to achieve $40,000 of operating income is ________.

A) 590 units

B) 399 units

C) 723 units

D) 532 units