Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac

تمرين 17

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.
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.