Flower Depot, Inc

Multiple Choice

Flower Depot, Inc. sells a single product for $10. Variable costs are $4 per unit and fixed costs total $120,000 at a volume level of 10,000 units. What dollar sales level would Flower Depot have to achieve to earn a target profit of $240,000?

A) $400,000.
B) $500,000.
C) $600,000.
D) $750,000.
E) $900,000.