Preparing a break-even analysis. Refer to the data for the Van Doren Company in Problem 26-3A to complete the following:

Instructions 1. Compute the monthly sales volume at the break-even point for the Van Doren Company.

2. Prepare a monthly break-even chart. NOTE: Both the horizontal axis and the vertical axis should represent dollars.

3. What sales volume would be required to earn a net income of $10,000 for the month?

4. The sales manager of the Van Doren Company estimates that if the average sales price of merchandise were to be decreased by 4 percent, the number of units sold could be increased by 10 percent.

a. What effect would this have on the break-even point?

b. What would be the new break-even point?