2. Compute the sales (units) required to realize a target profit of $70,000. units 3. Construct a cost-volume-prot chart, assuming maximum sales of 11,000 units within the relevant range. From your chart, indicate whether each of the following sales levels would produce a profit, a loss, or break-even. $539,000 ' $433,000 ' $385,000 ' $237,000 v $231,000 * 4. Determine the probable income (loss) from operations if sales total 8,800 units. If required, use the minus sign to indicate a loss. $ 3. PR.21.04.ALGO (Algorithmic) Break~Even Sales and Cost-Volume-Profit Chart Last year, Hever Inc. had sales of $567,000, based on a unit selling price of $270. The variable cost per unit was $189, and xed costs were $89,100. The maximum sales within Hever Inc.'s relevant range are 2,800 units. Hever Inc. is considering a proposal to spend an additional $36,450 on billboard advertising during the current year in an attempt to increase sales and utilize unused capacity. Required: 1. Construct a cost-volume-prot chart on your own paper, indicating the breakeven sales for last year. In your computations, do not round the contribution margin percentage. Break-even sales (dollars) ' Break-even sales (unitS) ' 2. Using the cost-volume-profit chart prepared in part (1), determine (a) the income from operations for last year and (b) the maximum income from operations that could have been realized during the year. In your computations, do not round the contribution margin percentage. Income from operations " Maximum income from operations ' 3. Construct a cost-volume-prot chart {on your own paper) indicating the break-even sales for the current year, assuming that a noncancellable contract is signed for the additional billboard advertising. No changes are expected in the unit selling price or other costs. In your computations, do not round the contribution margin percentage. Dollars ' Units ' 4. Using the cost-volume-profit chart prepared in part (3), determine (a) the income from operations if sales total 2,100 units and (b) the maximum income from operations that could be realized during the year. In your computations, do not round the contribution margin percentage. Income from operations at units ' Maximum income from operations ' 1. PR.21.01A Classify Costs Seymour Clothing Co. manufactures a variety of clothing types for distribution to several major retail chains. The following costs are incurred in the production and sale of blue jeans: Required: Identify each cost listed below as variable costs fixed costs, or mixed cost. a. Shipping boxes used to ship orders b. Consulting fee of $200,000 paid to industry specialist for marketing advice c. Straight-line depreciation on sewing machines cl. Salesperson's salary, $10,000 plus 2% of the total sales e. Fabric f. Dye 9. Thread h. Salary of designers i. Brass buttons j. Legal fees paid to attorneys in defense of the company in a patent infringement suit, $50,000 plus $87 per hour k. Insurance premiums on property, plant, and equipment, $70,000 per year plus $5 per $30,000 of insured value over $8,000,000 I. Rental costs of warehouse, $5,000 per month plus $4 per square foot of storage used m. Supplies n. Leather for patches identifying the brand on individual pieces of apparel 0. Rent on plant equipment, $50,000 per year F q r. Wages of machine operators Janitorial services, $2,200 per month 5. Electricity costs of $0.10 per kilowatt-hour t. Property taxes on property, plant, and equipment 2. PRZI .03.ALGO (Algorithmic) Break-Even Sales and Cost-Volume-Profit Chart For the coming year, Cleves Company anticipates a unit selling price of $70, a unit variable cost of $35, and fixed costs of $192,500. Required: 1. Compute the anticipated break-even sales (units). units Salary of production vice president