Question: Crane Profiles provides testing services to school districts that wish to assess students reading and mathematical abilities. Last year Crane evaluated 60,000 math tests and

Crane Profiles provides testing services to school districts that wish to assess students reading and mathematical abilities. Last year Crane evaluated 60,000 math tests and 20,000 reading tests. An income statement for last year follows.

Math Testing

Reading Testing

Total

Per Unit

Total

Per Unit

Total Company

Sales revenue

$1,200,000 $20 $720,000 $36 $1,920,000

Variable expenses

840,000 14 360,000 18 1,200,000

Contribution margin

$360,000 $6 $360,000 $18 720,000

Fixed expenses

360,000

Operating income

$360,000

(a)

What is Cranes breakeven point in sales dollars? (Use your answer of breakeven units to calculate the breakeven point in dollars. Round Breakeven units and point in dollar to 0 decimal places, e.g. 5,275.)

Breakeven sales

$enter breakeven sales amount in dollars rounded to 0 decimal places

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