Question
For the coming year, Cleves Company anticipates a unit selling price of $86, a unit variable cost of $43, and fixed costs of $249,400. Required:
For the coming year, Cleves Company anticipates a unit selling price of $86, a unit variable cost of $43, and fixed costs of $249,400.
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 $111,800. fill in the blank 2 units
3. Construct a cost-volume-profit chart, assuming maximum sales of 11,600 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.
$696,600 $627,800 $498,800 $378,400 $301,000 4. Determine the probable income (loss) from operations if sales total 9,300 units. If required, use the minus sign to indicate a loss.
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