For the coming year, Sorkin Company anticipates a unit selling price of $80, a unit variable cost of $40, and fixed costs of $400,000.
1. Compute the anticipated break-even sales (units).
2. Compute the sales (units) required to realize income from operations of $200,000.
3. Construct a cost-volume-profit chart, assuming maximum sales of 20,000 units within the relevant range.
4. Determine the probable income (loss) from operations if sales total 16,000 units.