Break-Even Sales and Cost-Volume-Profit Chart

For the coming year, Sorkin Company anticipates a unit selling price of $62, a unit variable cost of $31, and fixed costs of $204,600.

Required:

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

2. Compute the sales (units) required to realize income from operations of $111,600. units

3. Construct a cost-volume-profit chart, assuming maximum sales of 13,200 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.

$570,400
$514,600
$409,200
$310,000
$248,000

4. Determine the probable income (loss) from operations if sales total 10,600 units. If required, use the minus sign to indicate a loss. $ Income or loss?