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Narchie sells a single product for $50

Accounting

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Narchie sells a single product for $50. Variable costs are 60% of the selling price, and the

company has fixed costs that amount to $400,000. Current sales total 16,000 units.

46.

Narchie:

A.

will break-even by selling 8,000 units.

B.

will break-even by selling 13,333 units.

C.

will break-even by selling 20,000 units.

D.

will break-even by selling 1,000,000 units.

E.

cannot break-even because it loses money on every unit sold.

47.

Each unit that Narchie sells will:

A.

increase profit by $20.

B.

increase profit by $30.

C.

increase profit by $50.

D.

increase profit by some other amount.

E.

decrease profit by $5.

48.

In order to produce a target profit of $22,000, Narchie's dollar sales must total:

A.

$8,440.

B.

$21,100.

C.

$1,000,000.

D.

$1,055,000.

E.

an amount other than those above