Question

1. Compute the anticipated break-even sales in units.
units
2. Compute the sales (units) required to realize a target profit of $240,000.
units
3. Construct a cost-volume-profit chart, assuming maximum sales of 20,000 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.
$1,200,000 Break-even Item 3
$1,000,000 Loss Item 4
$800,000 Loss Item 5
$400,000 Loss Item 6
$200,000 Loss Item 7
4. Determine the probable income (loss) from operations if sales total 16,000 units.
$ Income Item 9

Answer 1

1. Compute the anticipated break-even sales in units: Break-Even point (units) = Fixed Costs ÷ (Sales price per unit – Variable costs per unit) or in sales dollars using the formula: Break-Even point (sales dollars) = Fixed Costs ÷ Contribution Margin.

A sale is a transaction among or more events in which items or offerings are exchanged for cash or different belongings. inside the monetary markets, a sale is an agreement between a purchaser and supplier involving the price of a security and its transport for agreed-upon repayment.

Solution:-

1.) 12000 Units

2.) 18000 Units

4.) Profit=1,600,000-960,000-480,000=160,000

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