Break-Even Sales and Cost-Volume-Profit ChartFor 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 in units. units2. Compute the sales (units) required to realize a target profit of $240,000.units3. Construct a cost-volume-profit chart, assuming maximum sales of 20,000 units within the relevant range. From your chart, indicate whether each of thefollowing sales levels would produce a profit, a loss, or break-even.$1,200,000Break-even v$1,000,000Loss v$800,000Loss v$400,000Loss v$200,000Loss v4. Determine the probable income (loss) from operations if sales total 16,000 units.Income v%24

The break even sales are the sales where business incur no profit no loss during the period.

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 in units.

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 in units.

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 17E

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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 in units.

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