For the coming year, Tolstoy Company anticipates a unit selling price of $100, a unit variable cost

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For the coming year, Tolstoy Company anticipates a unit selling price of $100, a unit variable cost of $30, and fixed costs of $2,100,000.

Instructions

1. Compute the anticipated break-even sales (units).

2. Compute the sales (units) required to realize income from operations of $350,000.

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 40,000 units. Discuss.

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Survey of Accounting

ISBN: 978-0538749091

5th Edition

Authors: Carl S Warren

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Question Posted: Oct 21, 2011 04:42 AM

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For the coming year, Tolstoy Company anticipates a unit selling price of $100, a unit variable cost

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