PR 21-3A Break-even sales and cost-volume-profit chart OBJ. 3, 4 For the coming year, Cleves Company anticipates a unit selling price of $100, a unit vari- able cost of $60, and fixed costs of $480,000. Instructions 1. Compute the anticipated break-even sales (units). 2. Compute the sales (units) required to realize a target profit of $240,000. 3. Construct a cost-volume-profit chart, assuming maximum sales of 20,000 units within the relevant range. 4. Determine the probable income (loss) from operations if sales total 16,000 units.
PR 21-3A Break-even sales and cost-volume-profit chart OBJ. 3, 4 For the coming year, Cleves Company anticipates a unit selling price of $100, a unit vari- able cost of $60, and fixed costs of $480,000. Instructions 1. Compute the anticipated break-even sales (units). 2. Compute the sales (units) required to realize a target profit of $240,000. 3. Construct a cost-volume-profit chart, assuming maximum sales of 20,000 units within the relevant range. 4. Determine the probable income (loss) from operations if sales total 16,000 units.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:PR 21-3A Break-even sales and cost-volume-profit chart
OBJ. 3, 4
For the coming year, Cleves Company anticipates a unit selling price of $100, a unit vari-
able cost of $60, and fixed costs of $480,000.
Instructions
1. Compute the anticipated break-even sales (units).
2. Compute the sales (units) required to realize a target profit of $240,000.
3. Construct a cost-volume-profit chart, assuming maximum sales of 20,000 units within
the relevant range.
4. Determine the probable income (loss) from operations if sales total 16,000 units.
Transcribed Image Text:Question 1
Break even Sales (Units)
Question 2
Sales (Units)
Skip Question 3
Question 4
Income from operations
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