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