Contemporary Corp

Multiple Choice

Contemporary Corp. sells a single product for $80. Variable costs are 40%% of the selling price, and the company has fixed costs that amount to $500,000. Current sales total 18,000 units. Contemporary:

A) will break-even by selling 27,000 units.
B) will break-even by selling 10,417 units.
C) will break-even by selling 15,625 units.
D) will break-even by selling 18,000 units.
E) will break even by selling 12,000 units.