Reference no: EM132637238

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:

Problem 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