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Unformatted text preview: 1111CVP and Profit Volume Graphs LO4Selling Price$10 Unit variable cost$6 Total fixed cost $10,000 Revenue = $10 X UnitsUnit Sold XaxisTotal cost = ($ 6 X Units) + $10,000Revenue25005000Total cost25005000Revenue =$10 X UnitsUnits SoldTotal cost = ($6 X Units) + $15,000Revenue2,500 5,000 Total Cost0 2,500 5,000 Revenue =$10 X UnitsUnits SoldTotal cost = ($7 X Units) + $10,000Revenue0 2,500 5,000 Total Cost0 2,500 5,000 Revenue =$12 X UnitsUnits SoldTotal cost = ($6 X Units) + $10,000Revenue2,500 5,000 Total Cost0 2,500 5,000 Revenue =$10 X UnitsUnits SoldTotal cost = ($7 X Units) + $15,000Revenue1.Prepare a CVP graph with Unit Sold as the horizontal axis and D2.Prepare CVP graphs for each of the following independent scenarioa.Fixed cost increase by $5,000.b.Unit variable cost increases to $7.c.Unit selling price increases to $12.d.Assume that fixed costs increase by $5,000 and unit variable c2,500 5,000 Total Cost0 2,500 5,000 Operating income = ($10 X Units)  ($6 X Units)  $10,000...
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 Spring '10
 Smith
 Revenue

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