What would be the sales at the break-even point if fixed factory overhead increases by $1,700?
The following budgeted income statement was prepared by Fullton Corporation:
Sales (100 units at $100 a unit)
$10,000
Cost of goods sold:
Direct labor (variable)
$1,500
Direct materials
1,400
Variable factory overhead
1,000
Fixed factory overhead
500
4,400
Gross margin
5,600
Selling expenses:
Variable
600
Fixed
1,000
Administrative expenses:
Variable
500
Fixed
1,000
3,100
Net operating income
$ 2,500
What would be the sales at the break-even point if fixed factory overhead increases by $1,700?
A) $6,700
B) $8,400
C) $8,666
D) $9,200