Break-Even Sales and Cost-Volume-Profit Chart

For the coming year, Cleves Company anticipates a unit selling price of $60, a unit variable cost of $30, and fixed costs of $165,000.

Required:

1. Compute the anticipated break-even sales in units. units

2. Compute the sales (units) required to realize income from operations of $57,000. units

3. Construct a cost-volume-profit chart, assuming maximum sales of 11,000 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.

$462,000
$414,000
$330,000
$246,000
$198,000

4. Determine the probable income (loss) from operations if sales total 8,800 units. If required, use the minus sign to indicate a loss. $