Required information Problem 7-40 Basic CVP Relationships (LO 7-1, 7-2, 7-4) [The following information applies to the questions displayed below] Serendipity Sound, Inc., manufactures and sells compact discs. Price and cost data are as follows: Selling price per unit (package of two CDs) $ 25.00 Variable costs per unit: Direct material 10.50 Direct labor 5.00 Manufacturing overhead 3.00 Selling expenses 1. 30 Total variable costs per unit 19. 80 Annual fixed costs: Manufacturing overhead $ 192, 090 Selling and administrative 276, 000 Total fixed costs $ 468,000 Forecasted annual sales volume (120,000 units) $3,000,000 In the following requirements, ignore income taxes. Problem 7-40 Part 2 2. What is the company's break-even point in sales dollars? (Do not round your intermediate calculations.) Break-even point