Sweet Tooth Bakery Bakes and Sells Pies

Multiple Choice

Sweet Tooth Bakery bakes and sells pies.Sweet Tooth has annual fixed costs of $880,000 and a variable cost per pie of $7.50.Each pie sells for $15.50 each.The firm expects to sell 500,000 pies annually.What is the break-even point in sales dollars?

A) $3,100,000
B) $2,875,000
C) $1,705,000
D) $1,625,000