Market demand allowed Acme Corp. to raise its price by 20 percent to $60. What is the new level of break-even revenues if fixed charges including depreciation are $1 million and variable costs were 70 percent of the old price? (use the values in dollar)

Select one:

a.

$2,000,000

b.

$2,400,000

c.

$2,857,143

d.

$3,333,333