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Roadrunner Ltd sells biscuits in boxes to supermarkets throughout the country. In the financial year ended 30 June 2021, the company sold a total of

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Roadrunner Ltd sells biscuits in boxes to supermarkets throughout the country. In the financial year ended 30 June 2021, the company sold a total of 500,000 boxes of biscuits at $4 per box. The gross profit margin achieved on these sales was 75%. Operating expenses consisted of the following: Advertising Staff salaries Other administrative expenses $ 100,000 500,000 600,000 Cost of sales are considered as variable costs, and all other expenses are treated as fixed costs. Required: b) Calculate the breakeven number of boxes. What is the breakeven sales amount? (1/2 marks)

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