Mirabel Manufacturing
Budgeted Income Statement
For the Year Ending December 31
Sales			$ 36,750,000
Cost of goods sold:
	Variable	$ 13,300,000
	Fixed	$ 9,300,000
Gross Margin			$ 14,150,000
Selling & Administrative
	Commissions	$ 4,410,000
	Fixed Marketing Expenses	$ 1,350,000
	Fixed Administrative	$ 6,000,000
Net Operating Income		$ 2,390,000

 

	Model 101	Model 201	Model 301
Normal Annual Sales Volume	16,000	19,000	11,000
Unit Selling Price	$ 650	$ 750	$ 1,100
Variable expense per unit	$ 250	$ 200	$ 500

 

(Note: Each of the following questions is independent of the others)

1. What is Mirabel's over-all break-even point in sales dollars?