Task 2: CVP Analysis, Profit Equation

This task involves the use of the profit equation and CVP analysis. Read the scenario given below and respond to the questions that follow.

Clydes Marina has estimated that fixed costs per month are $300,000 and variable cost per dollar of sales is $0.40. Based on this information, perform the following tasks:

a. What is the break-even point per month in sales dollars?

b. What level of sales dollars is needed for a monthly profit of $60,000?

c. For the month of July, the marina anticipates sales of $1,000,000. What is the expected level of profit?