A Group of Venture Investors Is Considering Putting Money into Lemma

Multiple Choice

A group of venture investors is considering putting money into Lemma Books,which wants to produce a new reader for electronic books.The variable cost per unit is estimated at $250,the sales price would be set at twice the VC/unit,or $500,and fixed costs are estimated at $750,000.The investors will put up the funds if the project is likely to have an operating income of $500,000 or more.What sales volume would be required in order to meet the minimum profit goal? (Hint: Use the break-even formula,but include the required profit in the numerator.)

A) 4,513
B) 4,750
C) 5,000
D) 5,250
E) 5,513