Question: Flipper has just completed the final development of its only product, general pesticide ,which can be programmed to kill most insects before dying themselves. The

Flipper has just completed the final development of its only product, general pesticide ,which can be programmed to kill most insects before dying themselves. The product has taken 3 years and $6,000,000 to develop. The following costs are expected to be incurred on a monthly basis for the normal production level of 1,000,000 pounds of the new product:

Direct materials 300,000
direct labor 1,250,000
variable factory overhead 450,000
fixed factory overhead 2,000,000
variable selling general and admin 900,000
fixed selling general and admin 1,500,000
total $ 6,400,000

At a sales price of $5.90 per pound, the sales in pounds necessary to ensure a $3,000,000 profit the first year would be (to the nearest thousand pounds)

A. 13,017,000 pounds. B. 14,000,000 pounds. C. 15,000,000 pounds. D. 25,600,000 pounds.

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