Dixon Snowglobes Inc. manufactures a single product. The product sells for $10. The variable manufacturing cost per unit is $2 and the variable selling cost is $2 per unit. Dixon incurs monthly fixed costs of $100,000 for manufacturing and $140,000 for administration and selling. If Dixon raises its selling price by 10% in response to a 10% increase in variable costs, and income taxes are 40%, its new breakeven point in sales dollars (relative to that of the original data above)will be:

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The Answer of Dixon Snowglobes Inc. manufactures a single product. The product sells for $10. The variable manufacturing cost per unit is $2 and the variable selling cost is $2 per unit. Dixon incurs monthly fixed costs of $100,000 for manufacturing and $140,000 for administration and selling. If Dixon raises its selling price by 10% in response to a 10% increase in variable costs, and income taxes are 40%, its new breakeven point in sales dollars (relative to that of the original data above)will be: