A company has total fixed cost of $500,000. Its per unit variable cost is $5.00, and its price per unit is $10.00. What is the break-even point in sales dollars?
a. $100,000.
b. $2,500,000.
c. $1,000,000.
d. $33,000.
e. Cannot be determined from the information provided.
Answer: c. $1,000,000.