Market demand allowed Acme Corp. to raise its price by 20 percent to $60. What is the new level of break-even revenues if fixed charges including depreciation are $1 million and variable costs were 70 percent of the old price?

A) $2,400,000
B) $2,000,000
C) $3,333,333
D) $2,857,143

Answer: A) $2,400,000

Business

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