South Company sells a single product for $27 per unit. If variable expenses are 60% of sales and fixed expenses total $10,400, the break-even point in sales dollars will be: (Do not round intermediate calculations.)

	$10,400
→	$26,000
	$15,600
	$17,333

CM ratio = 1 - Variable expense ratio

CM ratio = 1 - 0.60 = 0.40

Dollar sales to break even = Fixed expenses ÷ CM ratio

=$10,400 ÷ 0.40 = $26,000