Reference no: EM132637556
Wallace Inc. prepared the following budgeted data based on a sales forecast of $6,000,000.
Variable Fixed
Direct materials $1,600,000
Direct labor 1,400,000
Factory overhead 600,000 $ 900,000
Selling expenses 240,000 360,000
Administrative expenses 60,000 140,000
Total $3,900,000 $1,400,000
Problem 1: What would be the amount of sales dollars at the break-even point?
A) $2,250,000
B) $3,500,000
C) $4,000,000
D) $5,300,000