Break-Even Sales and Cost-Volume-Profit Chart

For the coming year, Cleves Company anticipates a unit selling price of $128, a unit variable cost of $64, and fixed costs of $697,600.

Required:

1. Compute the anticipated break-even sales (units). units

2. Compute the sales (units) required to realize a target profit of $262,400. units

3. Construct a cost-volume-profit chart, assuming maximum sales of 21,800 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.

$1,958,400
$1,740,800
$1,395,200
$1,049,600
$832,000

4. Determine the probable income (loss) from operations if sales total 17,400 units. If required, use the minus sign to indicate a loss. $