Klinken Corporation’s contribution margin ratio on the sale of its most popular product is 42%. The product is priced at $80, annual fixed expenses are $800,000. Management is evaluating two options: (1) lowering variable costs by 10% and (2) reducing fixed expenses by 10%.Required: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.
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