Question
For the coming year, Cleves Company anticipates a unit selling price of $142, a unit variable cost of $71, and fixed costs of $454,400. Required:
For the coming year, Cleves Company anticipates a unit selling price of $142, a unit variable cost of $71, and fixed costs of $454,400.
Required:
1. Compute the anticipated break-even sales (units). fill in the blank 1 of 1 units
2. Compute the sales (units) required to realize a target profit of $220,100. fill in the blank 1 of 1 units
3. Construct a cost-volume-profit chart on paper, assuming maximum sales of 12,800 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.
Sales Levels in Dollars | Rrofit or Loss and or Break-Even |
---|---|
$1,278,000 | Break-evenLossProfitBreak-even |
$1,136,000 | Break-evenLossProfitProfit |
$908,800 | Break-evenLossProfitLoss |
$681,600 | Break-evenLossProfitLoss |
$539,600 | Break-evenLossProfitLoss |
4. Determine the probable operating income (loss) if sales total 10,200 units. If required, use the minus sign to indicate a loss. fill in the blank 1 of 2$ fill in the blank 2 of 2
IncomeLossIncome
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