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Moline Manufacturing Corporation reported the following items: Sales = $5,000,000; Variable costs of Production = $2,000,000; Variable Selling and Administrative Expenses = $250,000; Fixed Costs

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Moline Manufacturing Corporation reported the following items: Sales = $5,000,000; Variable costs of Production = $2,000,000; Variable Selling and Administrative Expenses = $250,000; Fixed Costs = $1,650,000; EBIT = $1,100,000; and the Marginal Tax Rate = 40%. Moline's break-even point in sales dollars is: a. $3,900,000. b. $3,750,000. c. $3,000,000. d. $2,340,000.

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