For the coming year, Peters Inc. anticipates fixed costs of $450,000, a unit variable cost of $45, and a unit selling price of $60. The maximum sales within the relevant range are $2,400,000.
a. Construct a cost-volume-profit chart.
b. Estimate the break-even sales (dollars) by using the cost-volume-profit chart constructed in (a).
c. What is the main advantage of presenting the cost-volume-profit analysis in graphic form rather than equation form?
This question was answered on: Jul 11, 2017
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