What-if?
Consider the following after you have completed the requirements of E4-12.
Determine the effect on the break-even point in sales dollars considering each of the following independently.
1. Total fixed costs increase to $365,000.
Break-even point =	$ 365,000		$ 0.70	=	$ 521,429
2. Variable costs decline to $0.25 per sales dollar.
Break-even point =	$ 365,000		0.25		$ 1,460,000
3. The anticipated sales volume increases to $1,100,000.
Break-even point =	$ 1,100,000		$ 0.70	=	$ 1,571,429
Comment on the BEPs from the above analyses in questions 1,2,3.