Klinken Corporation’s contribution margin ratio on the sale of its most popular product is 42%. The product is priced at $100, annual fixed expenses are $900,000. Management is evaluating two options: (1) lowering variable costs by 15% and (2) reducing fixed expenses by 15%. Calculate the current level of break-even sales in dollars, as well as the break-even sales for the two options. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)
a. break even in dollars
b. option 1 .break even in dollars
option 2 break even in dollars