For the coming year, Cleves Company anticipates a unit selling price of $98, a unit variable cost of $49, and fixed costs of $416,500. Required: 1. Compute the anticipated break-even sales (units). 416,500 units 2. Compute the sales (units) required to realize a target profit of $171,500. units 3. Construct a cost-volume-profit chart on paper, assuming maximum sales of 17,000 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. $1,166,200 $1,038,800 $833,000 $627,200 $499,800 4. Determine the probable operating income (loss) if sales total 13,600 units. If required, use the minus sign to indicate a loss.

Suppose a company finds that shipping cost is 3,560 each month plus 6.70 per package shipped. What is the cost formula for monthly shipping cost? Identify the independent variable, the dependent variable, the fixed cost per month, and the variable rate.

Contribution margin, break-even sales, cost-volume-profit chart, margin of safety, and operating leverage Wolsey Industries Inc. expects to maintain the same inventories at the end of 20Y3 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: It is expected that 21,875 units will be sold at a price of 160 a unit. Maximum sales within the relevant range are 27,000 units. Instructions Prepare an estimated income statement for 20Y3. What is the expected contribution margin ratio? Determine the break-even sales in units and dollars. Construct a cost-volume-profit chart indicating the break-even sales. What is the expected margin of safety in dollars and as a percentage of sales? Determine the operating leverage. It is expected that 12,000 units will be sold a price of 240 a unit. Maximum sales within the relevant range are 18,000 units. Instructions Prepare an estimated income statement for 20Y7. What is the expected contribution margin ratio? Determine the break-even sales in units and dollars. Construct a cost-volume-profit chart indicating the break-even sales. What is the expected margin of safety in dollars and as a percentage of sales? Determine the operating leverage.

Sales Revenue Approach, Variable Cost Ratio, Contribution Margin Ratio Arberg Companys controller prepared the following budgeted income statement for the coming year: Required: 1. What is Arbergs variable cost ratio? What is its contribution margin ratio? 2. Suppose Arbergs actual revenues are 30,000 more than budgeted. By how much will operating income increase? Give the answer without preparing a new income statement 3. How much sales revenue must Arberg earn to break even? Prepare a contribution margin income statement to verify the accuracy of your answer. 4. What is Arbergs expected margin of safety? 5. What is Arbergs margin of safety if sales revenue is 380,000?

Sales Needed to Earn Target Income Chillmax Company plans to sell 3,500 pairs of shoes at 60 each in the coming year. Variable cost is 35% of the sales price; contribution margin is 65% of the sales price. Total fixed cost equals 78,000 (includes fixed factory overhead and fixed selling and administrative expense). Required: 1. Calculate the sales revenue that Chillmax must make to earn operating income of 81,900 by using the point in sales equation. 2. Check your answer by preparing a contribution margin income statement based on the sales dollars calculated in Requirement 1.

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 in units.

ебоок Break-even sales and cost-volume-profit chart For the coming year, Cleves Company anticipates a unit selling price of $134, a unit variable cost of $67, and fixed costs of $629,800. Required: 1. Compute the anticipated break-even sales (units). units 2. Compute the sales (units) required to realize a target profit of $341,700. units 3. Construct a cost-volume-profit chart on paper, assuming maximum sales of 18,800 units within the relevant range. From your chart, indicate whether each of following sales levels would produce a profit, a loss, or break-even. $1,768,800 $1,581,200 $1,259,600 $951,400 $750,400 4. Determine the probable operating income (loss) if sales total 15,000 units. If required, use the minus sign to indicate a loss.

For the coming year, Cleves Company anticipates a unit selling price of $142, a unit variable cost of $71, and fixed costs of $603,500. 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 $298,200.fill in the blank 2 units 3.  Construct a cost-volume-profit chart, assuming maximum sales of 17,000 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. $1,689,800   $1,505,200   $1,207,000   $908,800   $724,200   4.  Determine the probable income (loss) from operations if sales total 13,600 units. If required, use the minus sign to indicate a loss.$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

What is the desired profit for the year? For this general accounting question