Instructions 1. Compute the anticipated break-even sales (units). 2. Compute the sales (units) required to realize income from operations of $525,000. 3. Construct a cost-volume-profit chart, assuming maximum sales of 50,000 units within the relevant range. 4. Determine the probable income (loss) from operations if sales total 30,000 units.

Financial & Managerial Accounting
13th Edition
ISBN:9781285866307
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter19: Cost Behavior And Cost-Volume-Profit Analysis
Section: Chapter Questions
Problem 19.17EX
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PR 22-3B
Break-even sales and
cost-volume-profit
chart
objs. 3, 41
✓120,000 units
For the coming year, Favre Products Inc. anticipates a unit selling price of $160, a unit
variable cost of $90, and fixed costs of $1,400,000.
Instructions
1. Compute the anticipated break-even sales (units).
2. Compute the sales (units) required to realize income from operations of $525,000.
3. Construct a cost-volume-profit chart, assuming maximum sales of 50,000 units
within the relevant range.
4. Determine the probable income (loss) from operations if sales total 30,000 units.
£ $300
Transcribed Image Text:PR 22-3B Break-even sales and cost-volume-profit chart objs. 3, 41 ✓120,000 units For the coming year, Favre Products Inc. anticipates a unit selling price of $160, a unit variable cost of $90, and fixed costs of $1,400,000. Instructions 1. Compute the anticipated break-even sales (units). 2. Compute the sales (units) required to realize income from operations of $525,000. 3. Construct a cost-volume-profit chart, assuming maximum sales of 50,000 units within the relevant range. 4. Determine the probable income (loss) from operations if sales total 30,000 units. £ $300
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