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PR 21-3A Break-even sales and cost-volume-profit chart OBJ. 3, 4 For the coming year, Cleves Company anticipates a unit selling price of $100, a
PR 21-3A Break-even sales and cost-volume-profit chart OBJ. 3, 4 For the coming year, Cleves Company anticipates a unit selling price of $100, a unit vari- able cost of $60, and fixed costs of $480,000. Instructions 1. Compute the anticipated break-even sales (units). 2. Compute the sales (units) required to realize a target profit of $240,000. 3. Construct a cost-volume-profit chart, assuming maximum sales of 20,000 units within the relevant range. 4. Determine the probable income (loss) from operations if sales total 16,000 units. PR 21-5A Sales mix and break-even sales OBJ. 5 Data related to the expected sales of laptops and tablets for Tech Products Inc. for the current year, which is typical of recent years, are as follows: Products Laptops Tablets Unit Selling Price $1,600 850 Unit Variable Cost $800 Sales Mix 40% 350 60% The estimated fixed costs for the current year are $2,498,600. Instructions 1. Determine the estimated units of sales of the overall (total) product, E, necessary to reach the break-even point for the current year.. 2. Based on the break-even sales (units) in part (1), determine the unit sales of both laptops and tablets for the current year. 3. Assume that the sales mix was 50% laptops and 50% tablets. Compare the break-even point with that in part (1). Why is it so different?
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