Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
8th Edition
ISBN: 9781305961883
Author: Carl Warren
Publisher: Cengage Learning
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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

 

                                                           Fixed                              Variable                     

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:

  1. What would be the amount of sales at the breakeven point?
  • 2,250,000
  • 4,000,000
  • 3,500,000
  • 5,300,000
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