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Managerial Accounting

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Breakeven in Dollars for Speakers

MGRACT-QUPGEB

Dolby Inc manufactures speakers for sale to companies and retailers. Each speaker sells for \$450. The contribution margin per unit is \$135, and the annual fixed costs are \$625,000. What is the amount in actual sales dollars needed to breakeven?

A

$2,083,333

B

$892,857

C

$1,562,500

D

$1,850,000