The following data are available on Del Fabbro International, INc. What bid price should be submitted to insure proper coverage of fixed overhead?

1) The fixed ( home office) overhead for the past year was $365,200

2) Total volume was $5,400,000

3) Del Fabbro uses a profit market of 10%

4) The estimating department has indicated that the direct and project (field) indirect costs will be $800,000.

Assume a 5% inflation factor and a 12% growth factor.

Using the data of the above, calculate the breakeven point for Del Fabbro International in the present year.