Break-Even Sales and Cost-Volume-Profit Chart For the coming year, Cleves Company anticipates a unit selling price of $136, a unit variable cost of $68, and fixed costs of $700,400. Required: 1. Compute the anticipated break-even sales in units. units 2. Compute the sales (units) required to realize income from operations of $319,600. units 3. Construct a cost-volume-profit chart, assuming maximum sales of 20,600 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. $1,958,400 Profit $1,754,400 Profit $1,400,800 Break-even $1,047,200 Loss $843,200 Loss 4. Determine the probable income (loss) from operations if sales total 16,500 units. If required, use the minus sign to indicate a loss. Income Feedback Check My Work 1. Unit sales minus unit variable costs equals unit contribution margin. Fixed costs divided by unit contribution margin equals break-even point. 2. (Fixed costs + Target profit) divided by unit contribution margin equals sales units. 3. Draw lines for total costs and total sales. The two lines should intersect at the break-even point. 4. (Sales units x unit contribution margin) minus fixed costs equals income (loss) from operations. Learning Objective 3. Learning Objective 4. Sales Mix and Break-Even Sales Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $210,600, and the sales mix is 60% bats and 40% gloves. The unit selling price and the unit variable cost for each product are as follows: Products Unit Selling Price Unit Variable Cost Bats $50 $40 Gloves 130 80 a. Compute the break-even sales (units) for the overall enterprise product, E. units b. How many units of each product, baseball bats and baseball gloves, would be sold at the break-even point? Baseball bats units units Baseball gloves S units