Yellow, Inc., sells a single product for $10. Variable costs are $4 per unit and fixed costs total $120,000 at a volume level of 10,000 units. What dollar sales level would Yellow have to achieve to earn a target net profit of $240,000?
a. $400,000.
b. $500,000.
c. $600,000.
d. $750,000.
e. $900,000.