Break-Even Sales and Cost-Volume-Profit Chart

For the coming year, Cleves Company anticipates a unit selling price of $106, a unit variable cost of $53, and fixed costs of $530,000.

Required:

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

2. Compute the sales (units) required to realize a target profit of $227,900. fill in the blank 2 units

3. Construct a cost-volume-profit chart, assuming maximum sales of 20,000 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.

$1,484,000

$1,325,000

$1,060,000

$795,000

$636,000

4. Determine the probable income (loss) from operations if sales total 16,000 units. If required, use the minus sign to indicate a loss. $fill in the blank 8