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

For the coming year, Cleves Company anticipates a unit selling price of $$56,$ a unit variable cost of $$28,$ and fixed costs of $$285,600.$

Required:

$1.$ Compute the anticipated break$-$even sales $($units$).$

fill in the blank $1$

$10,200$

units

$2.$ Compute the sales $($units$)$ required to realize a target profit of $$114,800.$

fill in the blank $2$

$14,300$

units

$3.$ Construct a cost$-$volume$-$profit chart on paper, assuming maximum sales of $20,400$ 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.

$$800,800$

Profit

$$716,800$

Profit

$$571,200$

Break$-$even

$$431,200$

Loss

$$341,600$

Loss

$4.$ Determine the probable operating income $($loss$)$ if sales total $16,300$ units. If required, use the minus sign to indicate a loss.

$fill in the blank $8$

Income