Klinken Corporations contribution margin ratio on the sale of its most popular product is 40%. The product is priced at $97, annual fixed expenses are $885,000. Management is evaluating two options: (1) lowering variable costs by 15% and (2) reducing fixed expenses by 15%.

Required: Calculate the current level of break-even sales in dollars, as well as the break-even sales for the two options. (Do not round Intermediate calculations. Round your answers to the nearest whole dollar amount.) Break-even sales in dollars Option 1: Break-even sales in dollars Option 2: Break-even sales in dollars