Reference no: EM132633195

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