For the coming year, India Ink Company anticipates a unit selling price of $400, a unit variable

Question:

For the coming year, India Ink Company anticipates a unit selling price of $400, a unit variable cost of $300, and fixed costs of $900,000.

Instructions
1. Compute the anticipated break-even sales (units).
2. Compute the sales (units) required to realize income from operations of $150,000.
3. Construct a cost-volume-profit chart, assuming maximum sales of 16,000 units within the relevant range.
4. Determine the probable income (loss) from operations if sales total 7,000 units.