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Use the Graphical Approach to CVP Analysis to Solve the Following

Question 8

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Use the graphical approach to CVP analysis to solve the following problem.
Canada Bagel Company manufactures packages of bagels that it sells for $2.50. The variable costs per package are $1.00.
a) To just break even, how many packages of bagels must be sold per month if the fixed costs are $60,000 per month?
b) What must unit sales be in order to have a profit of $7,500 per month?
Use the graphical approach to CVP analysis to solve the following problem. Canada Bagel Company manufactures packages of bagels that it sells for $2.50. The variable costs per package are $1.00. a) To just break even, how many packages of bagels must be sold per month if the fixed costs are $60,000 per month? b) What must unit sales be in order to have a profit of $7,500 per month?

Correct Answer:

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a) 40,000 ...

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