Scottsdale Ltd. has the following cost information available for various months of production:

                                                May                June                 July

Unit Sales                                20,000             40,000             50,000

Sales Revenues                        $640,000         $1,280,000      $1,600,000

Expenses                                 (800,000)        (900,000)        (950,000)

Profit (Loss)                           ($160,000)      $380,000         $650,000

(Note: Round to two decimal places if necessary)

Determine the variable cost per unit

Determine the fixed cost

Estimate the total cost for 30,000 units of production

Compute the break-even point in dollars.

Scottsdale Ltd. had sales last year of $975,000. Determine last year’s margin of safety in sales dollars.

Perform a sensitivity analysis to determine how an increase in sales of $30,000 would impact to Net Income?