Scottsdale Ltd. has the following cost information available for various months of production:
May June July
Unit Sales 20,000 40,000 50,000
Sales Revenues $640,000 $1,280,000 $1,600,000
Expenses (800,000) (900,000) (950,000)
Profit (Loss) ($160,000) $380,000 $650,000
(Note: Round to two decimal places if necessary)
Determine the variable cost per unit
Determine the fixed cost
Estimate the total cost for 30,000 units of production
Compute the break-even point in dollars.
Scottsdale Ltd. had sales last year of $975,000. Determine last year’s margin of safety in sales dollars.
Perform a sensitivity analysis to determine how an increase in sales of $30,000 would impact to Net Income?