Young and Martin, Inc., sells a single product. This year, 20,000 units were sold resulting in $130,000 of sales revenue, $60,000 of variable costs, and $17,500 of fixed costs:

The number of units that must be sold annually to achieve $52,500 of profits is

a. 10,000 units

b. 5,000 units

c. 20,000 units

d. 15,000 units

If sales increase by $19,500 in a year, profits will increase by

a. $35,000

b. $17,500

c. $10,500

d. $19,500