Question
For the coming year, Cleves Company anticipates a unit selling price of $126, a unit variable cost of $63, and fixed costs of $718,200. Required:
For the coming year, Cleves Company anticipates a unit selling price of $126, a unit variable cost of $63, and fixed costs of $718,200.
Required:
1. Compute the anticipated break-even sales (units). units
2. Compute the sales (units) required to realize a target profit of $252,000. units
3. Construct a cost-volume-profit chart on paper, assuming maximum sales of 22,800 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.
$2,016,000 | |
$1,801,800 | |
$1,436,400 | |
$1,083,600 | |
$856,800 |
4. Determine the probable operating income (loss) if sales total 18,200 units. If required, use the minus sign to indicate a loss. $fill in the blank 8
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