Wallace,Inc What Would Be the Amount of Sales Dollars at the of $6,000,000

Wallace,Inc.,prepared the following budgeted data based on a sales forecast of $6,000,000:
$\begin{array}{|l|r|r|}\hline & \text { Variable } & \text { Fixed } \\\hline \text { Direct materials } & \$ 1,600,000 & \\\hline \text { Direct labour } & 1,400,000 & \\\hline \text { Factory overhead } & 600,000 & \$ 900,000 \\\hline \text { Selling expenses } & 240,000 &360,000\\\hline \text { Administrative expenses } & \underline{60,000} & \underline{140,000} \\\hline \text { Total } & \$ 3,900,000 & \$ 1,400,000 \\\hline\end{array}$
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.

Correct Answer:

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