Hug Me Company Produces Dolls

Multiple Choice

Hug Me Company produces dolls. Each doll sells for $20.00. Variable costs per unit total $14.00, of which $6.25 is for direct materials and $5.25 is for direct labor. If the break- even volume in dollars is $1,446,000, then the total fixed costs for the period must be:

A) $1,446,000
B) $433,800
C) $361,500
D) $516,425