For the coming year, Cleves Company anticipates a unit selling price of $100, a unit variable cost of $60, and fixed costs of $480,000. Required: 1. Compute the anticipated break-even sales (units). fill in the blank 1 units 2. Compute the sales (units) required to realize a target profit of $240,000. fill in the blank 2 units 3. Construct a cost-volume-profit chart, assuming maximum sales of 20,000 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. $1,200,000 $1,000,000 $800,000 $400,000 $200,000 4. Determine the probable income (loss) from operations if sales total 16,000 units. $fill in the blank 8
Break-Even Sales and Cost-Volume-Profit Chart
For the coming year, Cleves Company anticipates a unit selling price of $100, a unit variable cost of $60, and fixed costs of $480,000.
Required:
1. Compute the anticipated break-even sales (units).
fill in the blank 1 units
2. Compute the sales (units) required to realize a target profit of $240,000.
fill in the blank 2 units
3. Construct a cost-volume-profit chart, assuming maximum sales of 20,000 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.
| $1,200,000 | |
| $1,000,000 | |
| $800,000 | |
| $400,000 | |
| $200,000 |
4. Determine the probable income (loss) from operations if sales total 16,000 units.
$fill in the blank 8
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