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How much revenue to break even

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Question - Zia motors wants to increase profitability cost & estimates next year based on sales forecast of $3,000,000.

Direct materials is 800,000

Direct labor is 700,000

Factory overhead is 750,000

Selling expenses is 300,000

Other administrative expenses is 100,000

A-CM: $1,050,000

Factory overhead and Selling exp is 40% variable

Other admin expenses is 30% variable

How much revenue to break even?

Set to target $700,000 for next year, how much revenue must be generated to achieve this?

Reference no: EM131723557

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