The past and future data of Elixir Manufacturing is as under:

Variable cost

% of sales Fixed cost

Direct Material 64.80% --

Direct labor 56.16 % --

Factory overheads 24.84% 564,120

Marketing Expenses 8.10 % 135,360

Administrative expenses 2.16 % 132,120

Budgeted sales for the next year is $ 5,643,000

Required:

Break even sales in dollar

Profit ($ ) at the budgeted sales volume

Profit($) if the actual sales :

Drop 13% from budgeted sales

Increase 20% from budgeted sales