The best answer is D. 275 . In a cost-volume-profit (CVP) graph , a company begins to realize a profit only after total revenue rises above total cost. The point where the total revenue line intersects the total cost line is the break-even point . At that exact level, profit is zero. To earn a profit, the company must sell more units than the break-even amount .

Because your pasted graph is partially distorted, the most reasonable interpretation is that the break-even point is shown at about 250 units . If that is the break-even level, then the first answer choice that would produce an actual profit is 275 units . That is why Option D is the most defensible answer from the graph and choices provided.

This follows basic CVP logic:

Below break-even = loss

At break-even = zero profit

Above break-even = profit

So if 250 units represents the break-even point on the graph, the company would need to sell 275 units to realize a profit. Therefore, the best answer is D .