Break-Even Sales and Cost-Volume-Profit Chart For the coming year, Sorkin Company anticipates a unit selling price of $142, a unit variable cost of $71, and fixed costs of $525,400. Required: 1. Compute the anticipated break-even sales in units. 7400 units 2. Compute the sales (units) required to realize income from operations of $191,700. units 3. Construct a cost-volume-profit chart, assuming maximum sales of 14,800 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. $1,476,800 $1,320,600 $1,050,800 $795,200 $624,800 4. Determine the probable income (loss) from operations if sales total 11,800 units. If required, use the minus sign to indicate a loss.

Break-Even Sales and Cost-Volume-Profit Chart For the coming year, Sorkin Company anticipates a unit selling price of $142, a unit variable cost of $71, and fixed costs of $525,400. Required: 1. Compute the anticipated break-even sales in units. 7400 units 2. Compute the sales (units) required to realize income from operations of $191,700. units 3. Construct a cost-volume-profit chart, assuming maximum sales of 14,800 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. $1,476,800 $1,320,600 $1,050,800 $795,200 $624,800 4. Determine the probable income (loss) from operations if sales total 11,800 units. If required, use the minus sign to indicate a loss.

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

Problem 3PA

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