A firm makes and sells surfboards using revolutionary manufacturing processess and materials. The fir sells
its surfboards for $110 to its distributors. The surfboards require $32 of foam and fiberglass and 1.0 direct
labor hours and annual fixed costs fo $475,000. The firm compensates its manufacturing employees at the
rate of $25 per hour. The firm also applies variable manufactuting overhead at the rate of 60% of direct labor
dollars.
What is the firms break-even point in dollars?
$ 1,507,500
$ 1,107,838
$ 1,993,220