Andrew Is Interested in Entering the Catfish Farming Business

Multiple Choice

Andrew is interested in entering the catfish farming business.He estimates if he enters this business,his fixed costs would be $50,000 per year and his variable costs would equal 30 percent of sales.If each catfish sells for $2,how many catfish would Andrew need to sell to generate a profit that is equal to 10 percent of sales?

A) 40,000
B) 41,667
C) 35,000
D) No level of sales can generate a 10 percent net return on sales.