Francois French manufactures cheese, which he normally sells at 20/kg, on which sales commission of 5% is paid. Plant capacity is 7,500 kg/month. Income tax is levied at 30%.

Fixed costs		Costs per kg.
Plant depreciation	8,000	Direct materials	4
Other plant costs	15,000	Direct labor	2
Corporate salaries	10,000	Var. factory O/H	3
Advertising	3,000

The number of kilograms to sell to break-even is:

		3,273
		3,600
		3,000
		2,300
		none of the above