D) will break-even by selling 1,000,000 units.
E) cannot break-even because it loses money on every unit sold.
Step-by-step explanation:
Two of the statements are applicable
Narchie:
- Will break-even by selling 1,000,000 units.
- Cannot break-even because it loses money on every unit sold.
The break-even point shall be calculated by dividing the gross fixed production costs by the product price per unit less the variable cost of production. Fixed costs are those that stay the same, irrespective of how many units are delivered.