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.
1. Compute the anticipated break even sales (units)
2. Compute the sales (units) required to relize income from operations of $200,00
3. Construct a cost-volume-profit chart, assuming maximum sales of 20,000 units within the relevant range
4. Determine the probable income (loss) from operations if sales total 16,000 units