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Use the following information for ABC Sales to answer questions 7 and 8ABC Sales has the following relationships:
Sales $400,000
Variable Costs $150,000
Fixed Costs $300,000
Problem 1: What level of Sales Dollars is required for ABC to break-even?
a. $400,000
b. $933,334
c. $500,000
d. $480,000
Problem 2: ABC wants to have a minimum Net Income of $40,000 (target profit). What level of Sales in dollars is required to achieve this level of Net Income?
a. $ 544,000
b. $ 933,334
c. $ 973,334
d. $1,040,000
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