sales dollars c. What would Diamond Jim’s break-even point be if sales commissions increased to $54? d. What would Diamond Jim’s break-even point be if selling expenses decreased by $6,000? Excel Chapter 9 Break-Even Point and Cost-Volume-Profi t Analysis 409 13. LO.2 (Formula; graph; income statement) Pittsburg Tar Co. had the following income statement for 2010: Sales (30,000 gallons × $8) $240,000 Variable cost Production (40,000 gallons × $3) $120,000 Selling (30,000 gallons × $0.50) 15,000 (135,000) Contribution margin $105,000 Fixed cost Production $ 46,000 Selling and administrative 6,200 (52,200) Income before tax $ 52,800 Income tax (40%) (21,120) Net income $ 31,680 a. Compute the break-even point using the equation approach. b. Prepare a CVP graph to refl ect the relationships among cost, revenue, profi t, and volume. c. Prepare a profi t-volume graph. d. Prepare a short explanation for company management about each of the graphs. e. Prepare an income