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Compute what would be the amount of sales at the breakeven

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Reference no: EM132638853

In planning its operations for 2011 on the basis of a sales forecast of 6,000,000 ASF Inc. prepared the following estimated data Costs and Expenses

Variable Fixed

Direct Material 1,600,000

Labor 1,400,000

Factory overhead 600,000 900,000

Selling expenses 240,000 360,000

Administrative expenses 60,000 140,000

Required:

Question a. What would be the amount of sales at the breakeven point?

Option 1: 2,250,000

Option 2: 4,000,000

Option 3: 3,500,000

Option 4: 5,300,000

 

Reference no: EM132638853

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