Break-Even Sales and Cost-Volume-Profit Chart

For the coming year, Sorkin Company anticipates a unit selling price of $68, a unit variable cost of $34, and fixed costs of $261,800.

Required:

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

2. Compute the sales (units) required to realize income from operations of $102,000. units

3. Construct a cost-volume-profit chart, assuming maximum sales of 15,400 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.

$734,400
$652,800
$523,600
$394,400
$312,800

4. Determine the probable income (loss) from operations if sales total 12,300 units. If required, use the minus sign to indicate a loss. $