York Manufacturing makes jungle gyms and tree houses for children. For jungle gyms, the price is $120 and variable expenses are $90 per unit. For tree houses, the price is $200 and variable expenses are $100. Total fixed expenses are $253,750. Last year, York sold 12,000 gyms and 8,000 tree houses.

Q1 What is the number of jungle gyms sold at break-even?

1. 1,002
2. 2,625
3. 875
4. 1,750
5. 668
6. None of the above is correct

Q2 What is the number of tree houses sold at break-even?

1. 1,002
2. 2,625
3. 875
4. 1,750
5. 668
6. None of the above is correct