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 =   ÷   =                     2. Variable costs decline to $0.25 per sales dollar.                          Break-even point =   ÷   =                     3. The anticipated sales volume increases to $1,100,000.                          Break-even point =   ÷   =                     Comment on the BEPs from the above analyses in questions 1,2,3.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Lake Stevens Marina has estimated that fixed costs per month are $350,000 and
variable cost per dollar of sales is  $0.30 .  The selling price per dollar of sales is: $1.00
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 =   ÷   =    
               
2. Variable costs decline to $0.25 per sales dollar.       
               
  Break-even point =   ÷   =    
               
3. The anticipated sales volume increases to $1,100,000.       
               
  Break-even point =   ÷   =    
               
Comment on the BEPs from the above analyses in questions 1,2,3.    
 
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