Market Demand Allowed Acme Corp

Multiple Choice

Market demand allowed Acme Corp.to raise its price by 20 percent to $60.What is the new level of break-even revenues if fixed charges including depreciation are $1 million and variable costs were 70 percent of the old price? (use the values in dollar)

A) $2,000,000
B) $2,400,000
C) $2,857,143
D) $3,333,333