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(Solved): Break-even sales and cost-volume-profit chart For the coming year, Cleves Company anticipates a uni ...
Break-even sales and cost-volume-profit chart For the coming year, Cleves Company anticipates a unit selling price of $76, a unit variable cost of $38, and fixed costs of $429,400. Required: 1. Compute the anticipated break-even sales (units). units 2. Compute the sales (units) required to realize a target profit of $178,600. units 3. Construct a cost-volume-profit chart on paper, assuming maximum sales of 22,600 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. 4. Determine the probable operating income (loss) if sales total 18,100 units. If required, use the minus sign to indicate a loss.