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Construct a cost-volume-profit chart

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Reference no: EM132820825

Problem - Break-even sales and cost-volume-profit chart

For the coming year, Redd Company anticipates a unit selling price of $125. A unit variable cost of $65 and fixed costs of $310,000.

1. Compute the anticipated break-even sales (unite).

2. Compute the sales (units) required to realize a target profit of $50,000.

3. Construct a cost-volume-profit chart, assuming maximum sales of 10,000 units within the relevant range.

4. Determine the probable income (loss) from operations if sales total 3,000 units.

Reference no: EM132820825

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