Cost-volume-profit; volume defined in sales dollars. An excerpt from the income statement of the Sandy Lopez Company follows.

Estimated fixed costs in Year 1 are $660,000.

a. What percentage of sales revenue is variable cost?

b. What is the break-even point in sales dollars for Sandy Lopez Company?

c. Prepare a cost- volume-profit graph for Sandy Lope/ Company.

d. If sales revenue falls to $2, 800, 000, what will be the estimated amount of profit?

e. What amount of sales dollars produces a profit of $1,1 20,000?

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SANDY LOPEZ COMPANY Income Statement Year Ended December 31, Year 1 Sales Operating Expenses: Cost of Goods Sold Selling Costs Administrative Costs: Total Operating Costs $1,425,000 450.000 225,000 Profit $3,000,000 2.100.000 $ 900.000