Break-Even Sales and Cost-Volume-Profit Chart

For the coming year, Sorkin Company anticipates a unit selling price of $84, a unit variable cost of $42, and fixed costs of $424,200.

Required:

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

2. Compute the sales (units) required to realize income from operations of $180,600. units

3. Construct a cost-volume-profit chart, assuming maximum sales of 20,200 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.

$1,184,400	SelectBreak-evenLossProfitItem 3
$1,058,400	SelectBreak-evenLossProfitItem 4
$848,400	SelectBreak-evenLossProfitItem 5
$638,400	SelectBreak-evenLossProfitItem 6
$512,400	SelectBreak-evenLossProfitItem 7

4. Determine the probable income (loss) from operations if sales total 16,200 units. If required, use the minus sign to indicate a loss. $ SelectIncomeLossItem 9