Required information Dollars $1800,000 Maximum productive capacity = 1,800 units $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0 0 Break-Even Point (sales of 800 units or $80,000) Loss Area 200 Total Sales 0:00 / 1:56 Total Costs Profit Area 400 600 800 1,000 1,200 1,400 1,600 1,800 Volume (units produced and sold Knowledge Check 01 Based on a CVP graph, select the correct drop-down answer for each question. Line that starts at zero on the vertical axis with a slope based on the selling price per unit. Line that starts at the fixed cost level on the vertical axis and increases based on the slope of the variable cost per unit.
Required information Dollars $1800,000 Maximum productive capacity = 1,800 units $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0 0 Break-Even Point (sales of 800 units or $80,000) Loss Area 200 Total Sales 0:00 / 1:56 Total Costs Profit Area 400 600 800 1,000 1,200 1,400 1,600 1,800 Volume (units produced and sold Knowledge Check 01 Based on a CVP graph, select the correct drop-down answer for each question. Line that starts at zero on the vertical axis with a slope based on the selling price per unit. Line that starts at the fixed cost level on the vertical axis and increases based on the slope of the variable cost per unit.
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 16MC: Break-even for a multiple product firm. can be calculated by dividing total fixed costs by the...
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