Problem 1: Scottsdale Ltd. has the following cost information available for various months of production:

May June July

Unit Sales 20,000 40,000 50,000

Sales Revenues $640,000 $1,280,000 $1,600,000

Expenses (800,000) (900,000) (950,000)

Profit (Loss) ($160,000) $380,000 $650,000

(Note: Round to two decimal places if necessary)

Determine the variable cost per unit

Determine the fixed cost

Estimate the total cost for 30,000 units of production

Compute the break-even point in dollars.

Scottsdale Ltd. had sales last year of $975,000. Determine last years margin of safety in sales dollars.

Perform a sensitivity analysis to determine how an increase in sales of $30,000 would impact to Net Income?