Break-Even Sales and Cost-Volume-Profit Chart

For the coming year, Sorkin Company anticipates a unit selling price of $134, a unit variable cost of $67, and fixed costs of $623,100.

Required:

1. Compute the anticipated break-even sales in units. units

2. Compute the sales (units) required to realize income from operations of $294,800. units

3. Construct a cost-volume-profit chart, assuming maximum sales of 18,600 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.

$1,742,000	Profit
$1,554,400	Profit
$1,246,200	Break-even
$938,000	Loss
$750,400	Loss

4. Determine the probable income (loss) from operations if sales total 14,900 units. If required, use the minus sign to indicate a loss. $ Income