Break-Even Sales and Cost-Volume-Profit Chart

For the coming year, Cleves Company anticipates a unit selling price of $138, a unit variable cost of $69, and fixed costs of $800,400.

Required:

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

2. Compute the sales (units) required to realize a target profit of $386,400. units

3. Construct a cost-volume-profit chart, assuming maximum sales of 23,200 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.

$2,235,600
$2,001,000
$1,600,800
$1,200,600
$966,000

4. Determine the probable income (loss) from operations if sales total 18,600 units. If required, use the minus sign to indicate a loss. $