Break-Even Sales and Cost-Volume-Profit Chart For the coming year, Sorkin Company anticipates a unit selling price of $142, a unit variable cost of $71, and fixed costs of $525,400. Required: 1. Compute the anticipated break-even sales in units. 7400 units 2. Compute the sales (units) required to realize income from operations of $191,700. units 3. Construct a cost-volume-profit chart, assuming maximum sales of 14,800 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. $1,476,800 $1,320,600 $1,050,800 $795,200 $624,800 4. Determine the probable income (loss) from operations if sales total 11,800 units. If required, use the minus sign to indicate a loss.

Break-Even Sales and Cost-Volume-Profit Chart For the coming year, Sorkin Company anticipates a unit selling price of $142, a unit variable cost of $71, and fixed costs of $525,400. Required: 1. Compute the anticipated break-even sales in units. 7400 units 2. Compute the sales (units) required to realize income from operations of $191,700. units 3. Construct a cost-volume-profit chart, assuming maximum sales of 14,800 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. $1,476,800 $1,320,600 $1,050,800 $795,200 $624,800 4. Determine the probable income (loss) from operations if sales total 11,800 units. If required, use the minus sign to indicate a loss.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Question

Break-Even Sales and Cost-Volume-Profit Chart
For the coming year, Sorkin Company anticipates a unit selling price of $142, a unit variable cost of $71, and fixed costs of $525,400.
Required:
1. Compute the anticipated break-even sales in units.
7400 units
2. Compute the sales (units) required to realize income from operations of $191,700.
units
3. Construct a cost-volume-profit chart, assuming maximum sales of 14,800 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.
$1,476,800
$1,320,600
$1,050,800
$795,200
$624,800
4. Determine the probable income (loss) from operations if sales total 11,800 units. If required, use the minus sign to indicate a loss.

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