Assistance needed on part 3 at the bottom.

Exercise 4-12 CVP Analysis, Profit Equation - SEE TEXTBOOK PAGE 4-33. (16 points) Lake Stevens Marina has estimated that fixed costs per month are $350,000 and variable cost per dollar of sales is $0.30 The selling price per dollar of sales is: $1.00 Required a. What is the break-even point per month in sales dollars given the following information? Selling price per dollar of sales Variable cost per dollar of sales Contribution margin per dollar of sales $1.00 $0.30 $0.70 Break-even point = $ 350,000 - $ 0.70 = $ 500,000 b. What level of sales is needed for a monthly profit of $70,000 ? Sales required = $ 420,000 - $ 0.70 = $ 600,000 $1,000,000. What is the c. For the month of July, the marina anticipates sales of expected level of profit? Expected profit = $ 700,000 $ 350,000 = $ 350,000 What-if? Consider the following after you have completed the requirements of E4-12. Determine the effect on the break-even point in sales dollars considering each of the following independently. 1. Total fixed costs increase to $365,000. Break-even point = $ 365,000 $ 0.70 II $ 521,429 2. Variable costs decline to $0.25 per sales dollar. Break-even point = $ 350,000 0.75 = $ 466,667 3. The anticipated sales volume increases to $1,100,000. Break-even point = = Comment on the BEPs from the above analyses in questions 1,2,3