Using the data for Peters Inc. in Exercise 20–17, for the coming year, Peters Inc. anticipates fixed costs of $450,000, a unit variable cost of $45, and a unit selling price of $60. The maximum sales within the relevant range are $2,400,000.
(a) Determine the maximum possible operating loss,
(b) Compute the maximum possible income from operations,
(c) Construct a profit-volume chart,
(d) Estimate the break-even sales (units) by using the profit-volume chart constructed in (c).