Smitty's Smoothies Has Fixed Costs of $1600 Per Month

Smitty's Smoothies has fixed costs of $1600 per month.The only variable costs Smitty incurs are for the ingredients and labour needed to produce smoothies.These cost $1.50 per drink.Smitty sells his delicious concoctions for $3.50 each.Which of the following statements is correct?

A) Smitty will maximize his profits at a sales volume of 560 smoothies per month.
B) Smitty will be able to earn a profit if he can sell more than 400 smoothies each month.
C) Regardless of sales volume, Smitty will never be able to earn a profit under these conditions. In order to stay in business, he must raise his price to at least $4 per smoothie.
D) In order to break even, Smitty must sell at least 800 smoothies each month.