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Break-Even Sales and Cost-Volume-Profit Chart Last year, Hever inc, had sales of $675,000, based on a unit selling price of $270. The variable cost per

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Break-Even Sales and Cost-Volume-Profit Chart Last year, Hever inc, had sales of $675,000, based on a unit selling price of $270. The variable cost per unit was $216, and fixed costs ware $59,400. The maximum sales within Hever Inc.'s relevant range are 3,200 units. Hever Inc. is considering a proposal to spend an additional $24,300 on bilboard advertising during the current year in an attempt to increase sales and utilize unused capacity. Required: 1. Construct a cost-volume-profit chart on your own paper, indicating the break-even sales for last year, In your computations, do not round the contribution margin percentage. 2. Using the cost-volume-profit chart prepared in part (1), determine (a) the income from operations for last year and (b) the maximum inceme from operations that could have been realized during the vear. In your computations, do not round the contribution margin percentage. 3. Construct a cost-volume-profit chart (on your own paper) indicating the break-even sales for the current year, assuming that a noncancellable contract is signed for the additional biliboard advertising. No changes are fxpected in the unit selling price or other costs. In your computations, do not round the contribution margin percentage. 4. Using the cost-volume-profit chart prepared in part (3), determine (a) the income from operations if saies total 2,500 units and (b) the maximum income from operations that could be realized during the year. In your computations, do not round the contribution margin percentage. Q inore Check My Work uses remaining 1. Construct a cost-volume-profit chart on your own paper, indicating the break-even sales for last yeat. In vour computations, do not round the contribution margin percentage. 2. Using the cost-volume-profit chart prepared in part (1), determine (a) the incorne from operations for last year and (b) the maximum income from operations that could have been realized during the year. In your computations, do not round the contribution margin percentage. 3. Construct a cost-volume-profit chart. (on your own paper) indicating the break-even sales for the current year, assuming that a noncancellable contract is signed for the additional billboard advertising. No changes are expected in the unit seiling price or other costs. In your computations, do not round the contribution margin percentage. 4. Using the cost-volume-profit chart prepared in part (3). determine (a) the income from operations if sates total 2.500 units and (b) the maximum income from operations that could be realized during the Year, In your computations, do not round the contribution margin percentage

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