Chapter 21, Problem 12E

To determine

Cost-volume-profit (CVP) analysis a method that measures operating income, product costs and profits at various output levels. The main assumption of CVP method is that whatever will be produced will be sold. There will be no closing inventory.

Mainly there are four components which are analyzed in CVP such as Activity level, Price per unit, variable cost per unit and total fixed cost.

To Calculate:The unit sales and sales in dollarsto earn target income calculated is asked to be calculated in the specific question.