Question
Break-Even Sales and Cost-Volume-Profit Chart For the coming year, Sorkin Company anticipates a unit selling price of $114, a unit variable cost of $57, and
Break-Even Sales and Cost-Volume-Profit Chart
For the coming year, Sorkin Company anticipates a unit selling price of $114, a unit variable cost of $57, and fixed costs of $359,100.
Required:
1. Compute the anticipated break-even sales in units. units
2. Compute the sales (units) required to realize income from operations of $182,400. units
3. Construct a cost-volume-profit chart, assuming maximum sales of 12,600 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.
$1,003,200 | Profit |
$900,600 | Profit |
$718,200 | Break-even |
$535,800 | Loss |
$433,200 | Loss |
4. Determine the probable income (loss) from operations if sales total 10,100 units. If required, use the minus sign to indicate a loss. $ Income
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