Based on this information, the breakeven points for The Gearing Company and Hebelkraft, Inc. are:

Juan Alavanca is evaluating the risk of two companies in the machinery industry: The
Gearing Company and Hebelkraft, Inc. Alavanca used the latest fiscal year’s financial
statements and interviews with managers of the respective companies to gather the
following information:
The Gearing Company Hebelkraft, Inc.
Number of units produced and sold 1 million 1.5 million
Sales price per unit $200 $200
Variable cost per unit $120 $100
Fixed operating cost $40 million $90 million
Fixed financing expense $20 million $20 million
A. 0.75 million and 1.1 million units, respectively.
B. 1 million and 1.5 million units, respectively.
C. 1.5 million and 0.75 million units, respectively.

Answer: A. 0.75 million and 1.1 million units, respectively.