1. Paschals Parasailing Enterprises has estimated that fixed costs per month are $110,500 and variable cost per dollar of sales is $0.45 (6 points). What is the break-even point per month in sales? What level of sales is needed for a monthly profit of $80,000? For the month of August, Paschals anticipates sales of $450,000. What is the expected level of profit?

2. Princess Cruise Lines has the following service departments: concierge, valet, and maintenance. Expenses for these departments are allocated to Mediterranean and transatlantic cruises. Expenses for the departments are totaled (both variable and fixed components are combined) and as follows. Concierge $1,500,000 Valet $2,750,000 Maintenance $2,250,000 The sea miles logged are 6,000,000 for the Mediterranean and 18,000,000 for the transatlantic voyages. Based upon the sea miles logged, allocate the service department costs

3. Leekee Shipyards has a new barnacle-removing product for ocean-going vessels. The company invests $1,200,000 in operating assets and plans to produce and sell 400,000 units per year. Leekee wants to make a return on investment of 20% each year. Leekee needs to know what price to charge for this product. Use the absorption costing approach to determine the markup necessary to make the desired return on investment based on the following information.

	Per Unit	Total
Direct Materials	$2.00
Direct Labor	$1.50
Variable Manufacturing Overhead	$1.00
Fixed Manufacturing Overhead		$100,000
Variable Selling and Administrative Expense	$0.10
Fixed Selling and Administrative Expense		$100,000

4. The following information relates to Vice Versa Ventures for calendar year 20XX, the company