Gordon's Steel Parts produces parts for the automobile industry. The company has monthly fixed costs of $652,500

and a contribution margin of 90% of revenues.

1.	Compute Gordon's monthly breakeven sales in dollars. Use the contribution margin ratio approach.
2	Use contribution margin income statements to compute Gordon's monthly operating income or operating loss if revenues are $510,000 and if they are $1,030,000.
3.	Do the results in Requirement 2 make sense given the breakeven sales you computed in Requirement 1? Explain.