For the coming year, Cleves Company anticipates a unit selling price of $106, a unit variable cost of $53, and fixed costs of $530,000.
Break-Even Sales and Cost-Volume-Profit Chart
For 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 units
2. Compute the sales (units) required to realize a target profit of $227,900.
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.
| $1,484,000 |
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| $1,325,000 |
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| $1,060,000 |
|
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| $795,000 |
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| $636,000 |
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4. Determine the probable income (loss) from operations if sales total 16,000 units. If required, use the minus sign to indicate a loss.
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