Question
During the upcoming year De Anza Co. expects the following data: Expected unit selling price is: $125 Expected unit variable cost is: $70 Expected total
During the upcoming year De Anza Co. expects the following data:
Expected unit selling price is: $125
Expected unit variable cost is: $70
Expected total fixed costs are: $1,512,500
1. Calculate breakeven point in both units and dollars. (Show work )
2. Compute sales units required to realize income from operations of $630,000
3. Construct a cost-volume-profit chart assuming maximum sales in the relevant range of 40,000 units. ( Use the available graph template below.) Label the following parts of the graph: Sales Revenue, Fixed Costs, Variable Costs, Total Costs, Profit Area, Loss Area, and Break Even Point.
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