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Problem - break-even sales and cost-volume-profit graph

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Problem - Break-Even Sales and Cost-Volume-Profit Graph

For the coming year, Bernardino Company anticipates a unit selling price of $85, a unit variable cost of $15, and fixed costs of $420,000.

Instructions -

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

2. Compute the sales (units) required to realize operating income of $70,000.

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

4. Determine the probable operating income (loss) if sales total 8,000 units.

Reference no: EM132708148

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