23.

Sweet Tooth Bakery bakes and sells pies. Sweet Tooth has annual fixed costs of $360,000 and a variable cost per pie of $6.50. Each pie sells for $12.50 each. The firm expects to sell 400,000 pies annually. What is the break-even point in sales dollars?

a.

$820,000

b.

$1,250,000

c.

$750,000

d.

$625,000

PLEASE EXPLAIN!