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Determine the probable income or loss from operations

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Reference no: EM132881706

Problem - Break-even sales and cost-volume-profit chart - For the coming year, Sorkin Company anticipates a unit selling price of $80, a unit variable cost of $40, and fixed costs of $400,000.

Compute the anticipated break-even sales (units).

Compute the sales (units) required to realize income from operations of $200,000.

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

Determine the probable income (loss) from operations if sales total 16,000 units.

Reference no: EM132881706

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