Break$-$Even Sales and Cost$-$Volume$-$Profit Chart

For the coming year, Cleves Company anticipates a unit selling price of $$144,$ a unit variable cost of $$72,$ and fixed costs of $$842,400.$

Required:

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

units

Compute the sales $($units$)$ required to realize a target profit of $$396,000.$ units

Construct a cost$-$volume$-$profit chart on paper, assuming maximum sales of $23,400$ 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.

$$2,361,600$

$$2,102,400$

$$1,684,800$

$$1,267,200$

$$1,008,000$

Determine the probable operating income $($loss$)$ if sales total $18,700$ units. If required, use the minus sign to indicate a loss.