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Premium Beds is a retailer of luxury bed frames located in Los Angeles, California. Due to a recent industry-wide financial crisis, the CFO of Premium

Premium Beds is a retailer of luxury bed frames located in Los Angeles, California. Due to a recent industry-wide financial crisis, the CFO of Premium Beds fears a significant drop in the firm's upcoming income stream. The CFO asked you to use the company financial information provided below.

Sales price per unit $ 3,300.00
Per-unit variable costs:
Invoice cost 2,550.00
Sales commissions 290.00
Total per-unit variable costs $ 2,840.00
Total annual fixed costs:
Advertising $ 230,900
Rent 177,000
Salaries 385,900
Total annual fixed costs $ 793,800

The annual breakeven point in dollars is: (Do not round intermediate calculations.)

Multiple Choice

  • $5,694,653.

  • $5,494,653.

  • $5,394,653.

  • $5,194,653.

  • $4,994,653.

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