Break-Even Sales and Cost-Volume-Profit Chart

For the coming year, Cleves Company anticipates a unit selling price of $84, a unit variable cost of $42, and fixed costs of $399,000.

Required:

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

2. Compute the sales (units) required to realize a target profit of $159,600. units

3. Construct a cost-volume-profit chart, assuming maximum sales of 19,000 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.

$1,117,200
$999,600
$798,000
$596,400
$478,800

4. Determine the probable income (loss) from operations if sales total 15,200 units. If required, use the minus sign to indicate a loss. $