Question
Break-even sales and cost-volume-profit chart For the coming year, Cleves Company anticipates a unit selling price of $98, a unit variable cost of $49, and
Break-even sales and cost-volume-profit chart
For the coming year, Cleves Company anticipates a unit selling price of $98, a unit variable cost of $49, and fixed costs of $377,300.
Required:
1. Compute the anticipated break-even sales (units). fill in the blank 1 of 1 units
2. Compute the sales (units) required to realize a target profit of $132,300. fill in the blank 1 of 1 units
3. Construct a cost-volume-profit chart on paper, assuming maximum sales of 15,400 units within therelevant range. From your chart, indicate whether each of the following sales levels would produce a profit, a loss, or break-even.
Sales Levels in Dollars Rrofit or Loss and or Break-Even $1,058,400 Break-evenLossProfitProfit $940,800 Break-evenLossProfitProfit $754,600 Break-evenLossProfitBreak-even $568,400 Break-evenLossProfitLoss $450,800 Break-evenLossProfitLoss
4. Determine the probable operating income (loss) if sales total 12,300 units. If required, use the minus sign to indicate a loss. fill in the blank 1 of 2$ fill in the blank 2 of 2
IncomeLossIncome
Break-even sales and cost-volume-profit chart
For the coming year, Cleves Company anticipates a unit selling price of $98, a unit variable cost of $49, and fixed costs of $377,300.
Required:
1. Compute the anticipated break-even sales (units). fill in the blank 1 of 1 units
2. Compute the sales (units) required to realize a target profit of $132,300. fill in the blank 1 of 1 units
3. Construct a cost-volume-profit chart on paper, assuming maximum sales of 15,400 units within therelevant range. From your chart, indicate whether each of the following sales levels would produce a profit, a loss, or break-even.
Sales Levels in Dollars | Rrofit or Loss and or Break-Even |
---|---|
$1,058,400 | Break-evenLossProfitProfit |
$940,800 | Break-evenLossProfitProfit |
$754,600 | Break-evenLossProfitBreak-even |
$568,400 | Break-evenLossProfitLoss |
$450,800 | Break-evenLossProfitLoss |
4. Determine the probable operating income (loss) if sales total 12,300 units. If required, use the minus sign to indicate a loss. fill in the blank 1 of 2$ fill in the blank 2 of 2
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