PR $20-3$A Break$-$even sales and cost$-$volume$-$profit chart

$12,000$ units

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

Compute the anticipated break$-$even sales $($units$).$

Compute the sales $($units$)$ required to realize a target profit of $$240,000.$

Construct a cost$-$volume$-$profit chart, assuming maximum sales of $20,000$ units within the relevant range.

Determine the probable operating income $($loss$)$ if sales total $16,000$ units.