Question

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.



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  • CreatedJune 27, 2014
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