ABC Corp. is contemplating forming a new enterprise to produce cell phones. The sales price would be set at 1.5 times the variable cost per unit; the variable cost per unit is estimated to be $2.50; and management estimates its fixed costs will be $120,000. What sales volume would ABC Corp. have to achieve to break even?
Select one:
A. 86,640
B. 91,200
C. 96,000
D. 100,800
E. 105,840