Problem:
Paschal's Parasailing Enterprises has estimated that fixed costs per month are $115,600 and variable cost per dollar of sales is $0.35.
Required:
Question 1: What is the break-even point per month in sales?
Question 2: What level of sales is needed for a monthly profit of $70,000?
Question 3: For the month of August, Paschal's anticipates sales of $600,000. What is the expected level of profit?
Note: Provide thorough explanation of the given question.