Question
or the coming year, Cleves Company anticipates a unit selling price of $88, a unit variable cost of $44, and fixed costs of $404,800. Required:
or the coming year, Cleves Company anticipates a unit selling price of $88, a unit variable cost of $44, and fixed costs of $404,800.
Required:
1. Compute the anticipated break-even sales in units. units
2. Compute the sales (units) required to realize income from operations of $158,400. units
3. Construct a cost-volume-profit chart, assuming maximum sales of 18,400 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.
$1,135,200 | Break-even |
$1,012,000 | _______ |
$809,600 | |
$607,200 | |
$484,000 |
4. Determine the probable income (loss) from operations if sales total 14,700 units. If required, use the minus sign to indicate a loss. $ _____
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