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Determine the probable income from operations

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Reference no: EM13520272

For the coming year, Favre Products Inc. anticipates a unit selling price of $160, a unit variable cost of $90, and fixed costs of $1,400,000.
Instructions

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

2. Compute the sales (units) required to realize income from operations of $525,000.

3. Construct a cost-volume-profit chart, assuming maximum sales of 50,000 units within the relevant range.

4. Determine the probable income (loss) from operations if sales total 30,000 units.

Reference no: EM13520272

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