Break-Even Sales and Cost-Volume-Profit Graph For the coming year, Bernardino Company anticipates a unit selling price of $78, a unit variable cost of $39, and fixed costs of $468,000. Instructions: 1. Compute the anticipated break-even sales in units. _______________ units 2. Compute the sales (units) required to realize operating income of $253,500. _______________ units 3. Construct a cost-volume-profit graph on paper, assuming maximum sales of 24,000 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. $1,310,400 profit, a loss, or break-even ? $1,170,000 profit, a loss, or break-even ? $936,000 profit, a loss, or break-even ? $702,000 profit, a loss, or break-even ? $561,600 profit, a loss, or break-even ? 4. Determine the probable operating income (loss) if sales total 19,200 units. If required, use the minus sign to indicate a loss. $_____________ (profit, or loss ?)
Break-Even Sales and Cost-Volume-Profit Graph For the coming year, Bernardino Company anticipates a unit selling price of $78, a unit variable cost of $39, and fixed costs of $468,000. Instructions: 1. Compute the anticipated break-even sales in units. _______________ units 2. Compute the sales (units) required to realize operating income of $253,500. _______________ units 3. Construct a cost-volume-profit graph on paper, assuming maximum sales of 24,000 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. $1,310,400 profit, a loss, or break-even ? $1,170,000 profit, a loss, or break-even ? $936,000 profit, a loss, or break-even ? $702,000 profit, a loss, or break-even ? $561,600 profit, a loss, or break-even ? 4. Determine the probable operating income (loss) if sales total 19,200 units. If required, use the minus sign to indicate a loss. $_____________ (profit, or loss ?)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Break-Even Sales and Cost-Volume-Profit Graph
For the coming year, Bernardino Company anticipates a unit selling price of $78, a unit variable cost of $39, and fixed costs of $468,000.
Instructions:
1. Compute the anticipated break-even sales in units.
_______________ units
2. Compute the sales (units) required to realize operating income of $253,500.
_______________ units
3. Construct a cost-volume-profit graph on paper, assuming maximum sales of 24,000 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.
| $1,310,400 | profit, a loss, or break-even ? |
| $1,170,000 | profit, a loss, or break-even ? |
| $936,000 | profit, a loss, or break-even ? |
| $702,000 | profit, a loss, or break-even ? |
| $561,600 | profit, a loss, or break-even ? |
4. Determine the probable operating income (loss) if sales total 19,200 units. If required, use the minus sign to indicate a loss.
$_____________ (profit, or loss ?)
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