Graham's Steel Parts produces parts for the automobile industry. The company has monthly fixed expenses of $ 640 comma 000 and a contribution margin of 95 % of revenues.

1.	Compute Graham'sGraham's Steel Parts' monthly breakeven sales in dollars.
2.	Use the contribution margin ratio to project operating income (or loss) if revenues are $ 550 comma 000$550,000 and if they are $ 1 comma 030 comma 000$1,030,000.
3.	Do the results in Requirement 2 make sense given the breakeven sales you computed in Requirement 1? Explain.