Answer:
Cash breakeven point = (Fixed Assets - Depreciation) / Contribution Margin
Contribution Margin = Sales Price - Variable Cost
Cash Breakeven point
= ( 6,000,000 - 800,000) / ( 7,000 - 4,000)
= 1,300 units
Expected Annual Breakeven sales
= Cash breakeven point * Sales price
= 1,300 units * 7,000
= $9,100,000