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Break-Even Sales and Cost-Volume-Profit Chart

For the coming year, Cleves Company anticipates a unit selling price of $120, a unit variable cost of $60, and fixed costs of $426,000.

Required:

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

2. Compute the sales (units) required to realize a target profit of $198,000. fill in the blank 2 units

3. Construct a cost-volume-profit chart, assuming maximum sales of 14,200 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.

$1,188,000	Break-evenLossProfit
$1,068,000	Break-evenLossProfit
$852,000	Break-evenLossProfit
$636,000	Break-evenLossProfit
$516,000	Break-evenLossProfit

4. Determine the probable income (loss) from operations if sales total 11,400 units. If required, use the minus sign to indicate a loss. $fill in the blank 8

IncomeLoss