Fixed cost = $630,000
Variable cost = 60% of sales
Net income = $62,000
Let the sales be Y
Variable cost = Y x 60%
= 0.6 Y
Net income = Sales - Variable cost- Fixed cost
62,000 = Y- 0.6Y- 630,000
692,000 = 0.4 Y
Y = $1,730,000
Sales = $1730000
Second option is correct.
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