Question 6: 10 marks

Resin Products has estimated that fixed costs per month are $79,200 and variable cost per dollar of sales is $0.52.

Instructions:

1. What is the break-even point per month in sales? (4 marks)
2. What level of sales is needed for a monthly profit of $24,000? (3 marks)
3. For the month of July, the company anticipates sales of $240,000. What is the expected level of profit? (3 marks)