Readers Retreat is a small book store that rents space in a neighborhood shopping mall for $19,200 a year. Its utilities add another $7,800 yearly. The total staff salaries and benefits projected for next year equal $56,000. Readers Retreat also spends $900 on advertising and $2,400 on professional services. Other overhead expenses total $11,500.

Jamie Davis, the companys owner, would like to make a $40,000 profit after taxes next year, when the tax rate will be 25 percent. The store sells hardbound books, paperback books, and magazines. The average cost of each category of items and Readers markup on cost is $12.00 and 50 percent, hardbacks; $2.40 and 60 percent, paperbacks; and $1.90 and 60 percent, magazines.

In past years, 70 percent of the stores sales revenue came from hardback books, 20 percent from paperbacks, and the remaining 10 percent from magazines.

Required:

Determine the break-even point in revenues to reach the after-tax profit.