Question: In planning its operations for next year based on a sales forecast of $6,000,000, Wallace, Inc. prepared the following estimated costs and expenses: Variable Fixed
In planning its operations for next year based on a sales forecast of $6,000,000, Wallace, Inc. prepared the following estimated costs and expenses:
| Variable | Fixed | |
| Direct materials | $1,600,000 | |
| Direct labor | 1,400,000 | |
| Factory overhead | 600,000 | $900,000 |
| Selling expenses | 240,000 | 360,000 |
| Administrative expenses | 60,000 | 595,000 |
| $3,900,000 | $1,855,000 |
What would be the amount of sales dollars at the breakeven point?
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