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

Managerial Accounting
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ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
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Chapter6: Cost-volume-profit Analysis
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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  

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