Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Capex A Knowledge Based Expert System For Substantive Audit Planning

Authors: J. Efrim Boritz, Anthony K. P. Wensley

1st Edition

1558760563, 978-1558760561

More Books

Students also viewed these Accounting questions