Break-Even Sales and Cost-Volume-Profit Chart For the coming year, Cleves Company anticipates a unit selling price of $82, a unit variable cost of $41, and fixed costs of $405,900. Required: 1. Compute the anticipated break-even sales (units). 9,900 units 2. Compute the sales (units) required to realize a target profit of $205,000. 14,900 units 3. Construct a cost-volume-profit chart on paper, assuming maximum sales of 19,800 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. $1,139,800 $1,016,800 Profit Profit- $811,800 Break-even $606,800 $483,800 Loss Loss 4. Determine the probable operating income (loss) if sales total 15,800 units. If required, use the minus sign to indicate a loss. $610,900 X 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 selling price) minus fixed and variable costs equals income (loss) from operations.