Your friend is considering buying a bar in downtown Reykjavk. He considers the economic preconditions of the project and therefore seeks good advice from you. He estimates that the fixed cost of wages, liquor licenses and more is ISK 10 million. in a year. The bar costs ISK 100 million. and will be paid from his savings account which has generally yielded a 10% return. Variable costs (product purchases) are an estimated half of product sales. We do not anticipate any taxes or expenses other than those specified above. How much should the sales be in order for the project to pay off?

a. ISK 40 million.

b. ISK 55 million.

c. ISK 20 million.

d. ISK 45 million.

e. 25 million ISK