If fixed costs are $500,000 and variable costs are 60% of break-even sales, profit is $0 when sales revenue is $930,000.

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Break-even sales revenue is calculated when total costs (fixed costs + variable costs) equal sales revenue. If variable costs are 60% of break-even sales, then at break-even, $930,000 in sales revenue would not only cover the $500,000 fixed costs but also the variable costs, which are a percentage of the sales revenue itself, not a fixed amount. The statement incorrectly implies a direct calculation of profit based on these figures without considering the correct relationship between variable costs and sales revenue at break-even.

If Fixed Costs Are $500,000 and Variable Costs Are 60