Break$-$even sales and cost$-$volume$-$profit chart

For the coming year, Cleves Company anticipates a unit selling price of $$100,$ a unit variable cost of $$60,$ and fixed costs of $$480,000.$

Required:

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

$x$ units

Compute the sales $($units$)$ required to realize a target profit of $$240,000.$

units

Construct a cost$-$volume$-$profit chart on paper, assuming maximum sales of $20,000$ 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.

$$1,200,000$

$$1,000,000$

$$800,000$

$$400,000$

$$200,000$

Determine the probable operating income $($loss$)$ if sales total $16,000$ units.