For the coming year, Viking Products Inc. anticipates a unit selling price of $125, a unit variable cost of $50, and fixed costs of $1,200,000.
1. Compute the anticipated break-even sales (units).
2. Compute the sales (units) required to realize income from operations of $300,000.
3. Construct a cost-volume-profit chart, assuming maximum sales of 40,000 units within the relevant range.
4. Determine the probable income (loss) from operations if sales total 28,000 units.