Knothole Company sells desks at $480 per desk. The costs associated with each desk are as follows: $\begin{array}{ll}
\text { Direct materials } & \$ 195 \
\text { Direct labor } & 126 \
\text { Variable factory overhead } & 51
\end{array}$ Total fixed costs for the period are $456,840. The break- even volume in dollars is:
A) $1,573,560
B) $2,030,400
C) $456,840
D) None of these answers is correct.

Question

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The Answer of Knothole Company sells desks at $480 per desk. The costs associated with each desk are as follows: $\begin{array}{ll}
\text { Direct materials } & \$ 195 \
\text { Direct labor } & 126 \
\text { Variable factory overhead } & 51
\end{array}$ Total fixed costs for the period are $456,840. The break- even volume in dollars is:
A) $1,573,560
B) $2,030,400
C) $456,840
D) None of these answers is correct.