Narchie sells a single product for $50. Variable costs are 60% of the selling price, and the company has fixed costs that amount to $400,000. Current sales total 16,000 units. Narchie:
A. will break-even by selling 8,000 units.
B. will break-even by selling 13,333 units.
C. will break-even by selling 1,000,000 units.
D. will break-even by selling 20,000 units.
E. cannot break-even because it loses money on every unit sold.
Answer: D
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