Question
For the coming year, Cleves Company anticipates a unit selling price of $90, a unit variable cost of $45, and fixed costs of $468,000. Required:
For the coming year, Cleves Company anticipates a unit selling price of $90, a unit variable cost of $45, and fixed costs of $468,000.
Required:
1. Compute the anticipated break-even sales (units). fill in the blank 1 units
2. Compute the sales (units) required to realize a target profit of $211,500. fill in the blank 2 units
3. Construct a cost-volume-profit chart, assuming maximum sales of 20,800 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.
$1,314,000 | Break-even, Loss, or Profit |
$1,170,000 | Break-even, Loss, or Profit |
$936,000 | Break-even, Loss, or Profit |
$702,000 | Break-even, Loss, or Profit |
$558,000 | Break-even, Loss, or Profit |
4. Determine the probable income (loss) from operations if sales total 16,600 units. If required, use the minus sign to indicate a loss. $fill in the blank 8
income or loss
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