Response to the following problem:
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 income from operations of $70,000.
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 8,000 units.