Loretta & Nieces Fixed Costs Are $425,000, Including $25,000 of Depreciation

Multiple Choice

Loretta & Nieces fixed costs are $425,000, including $25,000 of depreciation expense. The price of each unit sold is $120, and the variable cost per unit is $60. How many units must the firm sell to reach the cash break-even point?

A) less than 7,333 units
B) 7,333 units
C) More than 7,333 units
D) not enough information has been provided to determine the cash break-even point