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Question - Wallace, Inc., prepared the following budgeted data based on a sales forecast of $6,000,000:
Variable
Fixed
Direct materials
$1,600,000
Direct labour
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
Required - What would be the amount of sales dollars at the break-even point?
a. $4,000,000.
b. $5,300,000.
c. $3,500,000.
d. $2,250,000.
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