Break-Even Sales and Cost-Volume-Profit ChartFor the coming year, Cleves Company anticipates a unit selling price of $106, a unit variable cost of $53, and fixed costs of$530,000.Required:1. Compute the anticipated break-even sales (units).fill in the blank 1 units2. Compute the sales (units) required to realize a target profit of $227,900.fill in the blank 2 units3. Construct a cost-volume-profit chart, assuming maximum sales of 20,000 units within the relevant range. From yourchart, indicate whether each of the following sales levels would produce a profit, a loss, or break-even.$1,484,000$1,325,000$1,060,000$795,000$636,0004. Determine the probable income (loss) from operations if sales total 16,000 units. If required, use the minus sign toindicate a loss.Sfill in the blank

Break even point = It is the level of sales wherein the company have no profit no loss. below the…

Answered: Break-Even Sales and Cost-Volume-Profit…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Determinant Company is a price−taker and uses a target−pricingapproach. Refer to the following information: Production volume 602,000 units per year Market price $34 per unit Desired operating income 17% of total assets Total assets $13,800,000 What is the target full product cost in total for the year? Assume all units produced are sold. Question content area bottom Part 1 A. $13,800,000 B. $18,122,000 C. $2,346,000 D.$ 102, 340
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