Reference no: EM132633409

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:

Problem 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