Grey, Inc Sells a Single Product for $20

Multiple Choice

Grey, Inc. sells a single product for $20. Variable costs are $8 per unit and fixed costs total $120,000 at a volume level of 5,000 units. Assuming that fixed costs do not change, Green's break-even sales would be:

A) $160,000.
B) $200,000.
C) $300,000.
D) $480,000.
E) None of the other answers is correct.