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Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac
Edition 26ISBN: 978-1337498159Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac
Edition 26ISBN: 978-1337498159 Exercise 31
Cost-volume-profit chart
For the coming year, Loudermilk Inc. anticipates fixed costs of $600,000, a unit variable cost of $75, and a unit selling price of $125. The maximum sales within the relevant range are $2,500,000.
a. Construct a cost-volume-profit chart.
b. Estimate the break-even sales (dollars) by using the cost-volume-profit chart coming in part (a).
c. What is the main advantage of presenting the cost-volume-profit analysis in graphic form rather than equation form
For the coming year, Loudermilk Inc. anticipates fixed costs of $600,000, a unit variable cost of $75, and a unit selling price of $125. The maximum sales within the relevant range are $2,500,000.
a. Construct a cost-volume-profit chart.
b. Estimate the break-even sales (dollars) by using the cost-volume-profit chart coming in part (a).
c. What is the main advantage of presenting the cost-volume-profit analysis in graphic form rather than equation form
Explanation
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a. Cost- Volume- profit chart 
b. Break-...
Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac
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