For the coming year, Cleves Company anticipates a unit selling price of $92, a unit variable cost of $46, and fixed costs of $299,000. Required: 1. Compute the anticipated break-even sales (units). units 2. Compute the sales (units) required to realize a target profit of $138,000. units 3. Construct a cost-volume-profit chart on paper, assuming maximum sales of 13,000 units within the relevant range. From your chart, indicat whether each of the following sales levels would produce a profit, a loss, or break-even.. $837,200 Profit Profit $745,200

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
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Break-Even Sales and Cost-Volume-Profit Chart
For the coming year, Cleves Company anticipates a unit selling price of $92, a unit variable cost of $46, and fixed costs of $299,000.
Required:
1. Compute the anticipated break-even sales (units).
units
2. Compute the sales (units) required to realize a target profit of $138,000.
units
3. Construct a cost-volume-profit chart on paper, assuming maximum sales of 13,000 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.
$837,200
Profit
$745,200
Profit
$598,000
Break-even
$450,800
Loss
Loss
$358,800
4. Determine the probable operating income (loss) if sales total 10,400 units. If required, use the minus sign to indicate a loss.
Income
Transcribed Image Text:Break-Even Sales and Cost-Volume-Profit Chart For the coming year, Cleves Company anticipates a unit selling price of $92, a unit variable cost of $46, and fixed costs of $299,000. Required: 1. Compute the anticipated break-even sales (units). units 2. Compute the sales (units) required to realize a target profit of $138,000. units 3. Construct a cost-volume-profit chart on paper, assuming maximum sales of 13,000 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. $837,200 Profit $745,200 Profit $598,000 Break-even $450,800 Loss Loss $358,800 4. Determine the probable operating income (loss) if sales total 10,400 units. If required, use the minus sign to indicate a loss. Income
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