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In planning its operations for next year based on a sales forecast of $6,000,000, Wallace, Inc. prepared the following estimated costs and expenses: Variable Fixed

In planning its operations for next year based on a sales forecast of $6,000,000, Wallace, Inc. prepared the following estimated costs and expenses:

Variable Fixed
Direct materials $1,600,000
Direct labor 1,400,000
Factory overhead 600,000 $900,000
Selling expenses 240,000 360,000
Administrative expenses 60,000 595,000
$3,900,000 $1,855,000

What would be the amount of sales dollars at the breakeven point?

Question 2 options:

A)

$4,000,000

B)

$3,500,000

C)

$5,300,000

D)

$2,250,000

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