TanyCorporation is a small table manufacturing company operating in the north ofPuerto Rico.

Managers estimate the following costs per unit (one table)

Direct material (DM)

$6.00

Direct labor (DL)

$4.00

Variable manufacturing overhead (VMO)

$3.00

Variable administrative expenses (VAE)

$1.00

The estimated contribution margin is

30%

Monthly fixed costs are

Manufacturing

$10,000.00

Administrative

$5,000.00

The monthly break-even point in dollars is

a.$40,000

b.$50,000

c.$60,000

d.$65,000