posted by jenny on .
. (TCO 4) Paschal’s Parasailing Enterprises has estimated that fixed costs per month are $115,600 and variable cost per dollar of sales is $0.38. This means that the contribution margin ratio is 62 percent.
(a) What is the break-even point per month in sales dollars?
(b) What level of sales in dollars is needed for a monthly profit of $67,000?
(c) For the month of August, Paschal’s anticipates sales of $585,000. What is the expected level of profit in dollars?
I am stuck on the letter a.