Answer:
Option (C) is correct.
Explanation:
Contribution per unit:
= selling price - variable cost per unit
= $225 - $90
= $135 per unit
Break-even in (Units):
= fixed expense Ă· Contribution per uni
= 354,060 Ă· 135
= 2622.67
So, Break-even in Sales:
= Break-even units Ă— selling price
= 2622.67 Ă— $225
= $590,100
Therefore, the break-even in monthly dollar sales is closest to $590,100.