CVP — sensitivity analysis. Assume last year's sales of Carlata's Toy Manufacturing were $1,000,000, fixed costs were $200,000, and variable costs were $500,000.

a. At what level of sales revenue would the store break even?

b. If sales revenue increases by 15 percent but unit prices, unit variable costs, and total annual fixed costs do not change, by how much will profit increase?

c. Ignoring the sales increase in b., if fixed costs decrease by 20 percent, by how much will profit increase?

d. Ignoring the facts in

b. and

c, if variable costs decrease by 10 percent, by how