Before the pandemic Evergeen Sprinklers was generating annual sales of $5.70 million with variable costs of $3.90 million, annual fixed costs of $2.60 million, and annual depreciation of $1.00 million. What sales level (in million of dollars) do they need in order to achieve accounting break-even, assuming fixed costs and depreciation remain the same?

a.

$12.88

b.

$8.23

c.

$2.00

d.

$11.40

e.

$5.07