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A company makes single product. When sales per month are $6.8m, total cost $6.56m. When sales per month are $5.2m, total cost $5.44m. There is a step cost increase of $400,000 in fixed costs when sales are $6m, but variable unit cost at all value levels of output and sales.
What is the breakeven point for sales revenue per month?
A. $6m
B. There are two BEP : $5.64m and $6.36m
C. $5.64m only
D. $6.36m onlyCould anyone help me to solve this?
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