Expected unit selling price is: $125 Expected unit variable cost is: $70 Expected total fixed costs are: $1,512,500 Required 1. Calculate breakeven point in both units and dollars. (Show work in blank space below.) Round units to the nearest unit and round dollars to the nearest dollar. 2. Compute sales units required to realize income from operations of $630,000. 3. Construct a cost-volume-profit chart assuming maximum sales in the relevant range of 40,000 units. ( Use the available graph template below.) Label the following parts of the graph: Sales Revenue, Fixed Costs, Variable Costs, Total Costs, Profit Area, Loss Area, and Break Even Point.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Expected unit selling price is: $125

Expected unit variable cost is: $70

Expected total fixed costs are: $1,512,500

Required 1. Calculate breakeven point in both units and dollars. (Show work in blank space below.) Round units to the nearest unit and round dollars to the nearest dollar.

2. Compute sales units required to realize income from operations of $630,000.

3. Construct a cost-volume-profit chart assuming maximum sales in the relevant range of 40,000 units. ( Use the available graph template below.) Label the following parts of the graph: Sales Revenue, Fixed Costs, Variable Costs, Total Costs, Profit Area, Loss Area, and Break Even Point.

 

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