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Cornerstones of Managerial Accounting 4th Edition by Maryanne Mowen, Don Hansen, Dan Heitger
Edition 4ISBN: 978-0324380767Cornerstones of Managerial Accounting 4th Edition by Maryanne Mowen, Don Hansen, Dan Heitger
Edition 4ISBN: 978-0324380767 Exercise 9
Cost-Volume-Profit Graphs
Lotts Company produces and sells one product. The selling price is $10, and the unit variable cost is $6. Total fixed cost is $10,000.
Required:
1. Prepare a CVP graph with ''Units Sold'' as the horizontal axis and ''Dollars'' as the vertical axis. Label the break-even point on the horizontal axis.
2. Prepare CVP graphs for each of the following independent scenarios: (a) Fixed cost increases by $5,000, (b) Unit variable cost increases to $7, (c) Unit selling price increases to $12, and (d) Fixed cost increases by $5,000 and unit variable cost is $7.
Lotts Company produces and sells one product. The selling price is $10, and the unit variable cost is $6. Total fixed cost is $10,000.
Required:
1. Prepare a CVP graph with ''Units Sold'' as the horizontal axis and ''Dollars'' as the vertical axis. Label the break-even point on the horizontal axis.
2. Prepare CVP graphs for each of the following independent scenarios: (a) Fixed cost increases by $5,000, (b) Unit variable cost increases to $7, (c) Unit selling price increases to $12, and (d) Fixed cost increases by $5,000 and unit variable cost is $7.
Explanation
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By extracting the information : 
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Cornerstones of Managerial Accounting 4th Edition by Maryanne Mowen, Don Hansen, Dan Heitger
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