Question
Break-Even Sales and Cost-Volume-Profit Chart.... For the coming year, Cleves Company anticipates a unit selling price of $58, a unit variable cost of $29, and
Break-Even Sales andCost-Volume-Profit Chart....
For the coming year, Cleves Company anticipates a unit selling price of $58, a unitvariable costof $29, andfixed costsof $159,500.
Required:
1.Compute the anticipated break-even sales (units).
units
2.Compute the sales (units) required to realize a target profit of $84,100.
units
3.Construct a cost-volume-profit chart, assuming maximum sales of 11,000 units within therelevant range. From your chart, indicate whether each of the following sales levels would produce a profit, a loss, or break-even.
$446,600
$400,200
$319,000
$237,800
$191,400
4.Determine the probable income (loss) from operations if sales total 8,800 units. If required, use the minus sign to indicate a loss.
$ .... ...
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