For the coming year, Cleves Company anticipates a unit selling price of $$120,$ a unit variable

cost of $$57\mathrm{.}50$ and fixed costs of $$500,000.$

Instructions

$1.$ Compute the anticipated break$-$even sales $($units$).$

$2.$ Compute the sales $($units$)$ required to realize a target profit of $$240,000.$

$3.$ Determine the probable operating income $($loss$)$ if sales total $15,000$ units. Using original

fixed costs.

$4.$ Construct a cost$-$volume$-$profit chart, assuming maximum sales of $12,000$ units within the relevant range