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Paschal's Parasailing Enterprises has estimated that fixed costs per month are $110,500 and variable cost per dollar of sales is $0.45 (6 points).

What is the break-even point per month in sales?
What level of sales is needed for a monthly profit of $80,000?
For the month of August, Paschal's anticipates sales of $450,000. What is the expected level of profit?

 

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