Better Bonds
Better Bonds Provided the Following Data -Refer to Plastic Gym

Multiple Choice

Better Bonds
Better Bonds provided the following data: $\begin{array}{lr}\text { Sales } & \$ 540,000 \\\text { Variable costs } & \$ 378,000 \\\text { Fixed costs } & \$ 120,000 \\\text { Expected production and sales in units } & 40,000\end{array}$
-Refer to Plastic Gym. The company expects tree house demand to increase from 4,000 to 8,000 units. Given that demand for tree houses has doubled, what is the sales revenue at break-even assuming the new sales mix?

A) $140,000
B) $253,700
C) $411,250
D) $665,000