Break-Even Sales and Cost-Volume-Profit Chart

For the coming year, Sorkin Company anticipates a unit selling price of $66, a unit variable cost of $33, and fixed costs of $369,600.

Required:

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

2. Compute the sales (units) required to realize income from operations of $194,700. units

3. Construct a cost-volume-profit chart, assuming maximum sales of 22,400 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.

$1,036,200
$924,000
$739,200
$554,400
$442,200

4. Determine the probable income (loss) from operations if sales total 17,900 units. If required, use the minus sign to indicate a loss. $