For the coming year, Favre Products Inc. anticipates a unit selling price of $160, a unit variable cost of $90, and fixed costs of $1,400,000.
Instructions
1. Compute the anticipated break-even sales (units).
2. Compute the sales (units) required to realize income from operations of $525,000.
3. Construct a cost-volume-profit chart, assuming maximum sales of 50,000 units within the relevant range.
4. Determine the probable income (loss) from operations if sales total 30,000 units.