Break-even sales and cost-volume-profit chart For the coming year, Cleves Company anticipates a unit selling...
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Break-even sales and cost-volume-profit chart
For the coming year, Cleves Company anticipates a unit selling price of $104, a unit variable cost of $52, and fixed costs of $509,600.
Required:
1. Compute the anticipated break-even sales (units). fill in the blank ( )units
2. Compute the sales (units) required to realize a target profit of $213,200. fill in the blank( ) units
3. Construct a cost-volume-profit chart on paper, assuming maximum sales of 19,600 units within the relevant range. From your chart, indicate whether each of the following sales levels would produce a profit, a loss, or break-even.
| Sales Levels in Dollars | Rrofit or Loss and or Break-Even |
|---|---|
| $1,424,800 | Profit |
| $1,279,200 | Profit |
| $1,019,200 | Break-even |
| $769,600 | Loss |
| $613,600 | Loss |
4. Determine the probable operating income (loss) if sales total 15,700 units. If required, use the minus sign to indicate a loss. fill in the blank ( )
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