Better Bonds
Better Bonds Provided the Following Data -Refer to Plastic Gym

Multiple Choice

Better Bonds
Better Bonds provided the following data: $\begin{array}{lr}\text { Sales } & \$ 540,000 \\\text { Variable costs } & \$ 378,000 \\\text { Fixed costs } & \$ 120,000 \\\text { Expected production and sales in units } & 40,000\end{array}$
-Refer to Plastic Gym. The company expects tree house demand to increase from 4,000 to 8,000 units per year. How many tree houses are sold at break-even using this new sales mix?

A) 668
B) 875
C) 1,002
D) 1,750