1) The Environmental Filter Company is planning to sell air filter systems for $3,500 per unit. Variable costs are $2,000 per unit and total fixed costs are $1,275,000. What is the dollar value of sales necessary to break even?

Select one:

a. $3,000,000

b. $2,000,000

c. $2,500,000

d. $2,975,000

2) The appropriate journal entry to record the application of overhead in a job costing system involves a debit to Work in Process and a credit to:

Select one:

a. Cost of Goods Sold

b. Factory Overhead

c. Cash

d. Income Summary