Break-Even Sales and Cost-Volume-Profit Chart For the coming year, Sorkin Company anticipates a unit selling...
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Accounting
Break-Even Sales and Cost-Volume-Profit Chart
For the coming year, Sorkin Company anticipates a unit selling price of $134, a unit variable cost of $67, and fixed costs of $623,100.
Required:
1. Compute the anticipated break-even sales in units. units
2. Compute the sales (units) required to realize income from operations of $294,800. units
3. Construct a cost-volume-profit chart, assuming maximum sales of 18,600 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.
$1,742,000
Profit
$1,554,400
Profit
$1,246,200
Break-even
$938,000
Loss
$750,400
Loss
4. Determine the probable income (loss) from operations if sales total 14,900 units. If required, use the minus sign to indicate a loss. $ Income
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