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Breok-Even Sales and Cost-Volume-profit Chart Last year, Hever the. had sales of $714,000, based on a unit seling price of $340. The variable cost per

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Breok-Even Sales and Cost-Volume-profit Chart Last year, Hever the. had sales of $714,000, based on a unit seling price of $340. The variable cost per unit was $238, and fixpd costs were $112,200. The maximum sales within Hever inci's relevant range are 2,800 units. Hever Inc. is considering a proposal to spend an additional 445,900 on billboard advertising during the currht. 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 contributian margin percentage. Break-even sales (dollars) 2. Using the cost-volume-profit chart prepared in part (1), determine (a) the whcome from operations for last year and (b) the maximuim income from oberations that Break-even sales (units) could have been realized during the year, In your computations, do not round the contribution margin percentage. income from operations 3. Construct a cost-volume-profit chart (on your own paper) indicating the break-even sales for the current year, assuming that a noncanceliable contract is signed tor Maximum income from operations the additional bilboard advertising. No changes are expected in the unit selling price or other costs. In your computations, do not round the contribution margin percentage- Dollars Units 3. Construct a cost-volume-protit chart (on your own paper) indicating the brejok-even sales for the current yeac, assuming, that a noncanceliable contract is signed for the additional billboard advertising. No changes are expected in the unit selling price or other costs. In your computations, do not round the contribution margin percentage. Doliars Units 4. Using the cost-volume-profit chart prepared in part (3), determine (a) the income from operations if sales total 2,100 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. Income from operations at units Maximum income from operations

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