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Break-even sales and cost-volume-profit chart For the coming year, Cleves Company anticipates a unit selling price of $104, a unit variable cost of $52, and

Break-even sales and cost-volume-profit chart

For the coming year, Cleves Company anticipates a unit selling price of $104, a unit variable cost of $52, and fixed costs of $509,600.

Required:

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

2. Compute the sales (units) required to realize a target profit of $213,200. fill in the blank( ) units

3. Construct a cost-volume-profit chart on paper, assuming maximum sales of 19,600 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.

Sales Levels in Dollars Rrofit or Loss and or Break-Even
$1,424,800 Profit
$1,279,200 Profit
$1,019,200 Break-even
$769,600 Loss
$613,600 Loss

4. Determine the probable operating income (loss) if sales total 15,700 units. If required, use the minus sign to indicate a loss. fill in the blank ( )$

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