A firm with 60% of sales going to variable costs, $1.5 million fixed costs, and $500,000 depreciation and sales of $3 million. How does the current level of sales compare to the accounting break-even sales level?
a) Current sales are $2 million below the break-even level.
b) Current sales are $333,333 below the break-even level.
c) Current sales are $800,000 below the break-even level.
d) Current sales exceed the break-even level by $360,000.