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. 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

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
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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. 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

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