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Denise Seals Problem 11-11

Denise Seals Problem 11-11 - 11-11 CVP and Profit Volume...

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11-11 CVP and Profit – Volume Graphs LO4 Selling Price $10 Unit variable cost $6 Total fixed cost $10,000 Revenue = $10 X Units Unit Sold X-axis Total cost = ($ 6 X Units) + $10,000 Revenue 0 2500 5000 Total cost 0 2500 5000 Revenue =$10 X Units Units Sold Total cost = ($6 X Units) + $15,000 Revenue 0 2,500 5,000 Total Cost 0 2,500 5,000 Revenue =$10 X Units Units Sold Total cost = ($7 X Units) + $10,000 Revenue 0 2,500 5,000 Total Cost 0 2,500 5,000 Revenue =$12 X Units Units Sold Total cost = ($6 X Units) + $10,000 Revenue 0 2,500 5,000 Total Cost 0 2,500 5,000 Revenue =$10 X Units Units Sold Total cost = ($7 X Units) + $15,000 Revenue 0 1. Prepare a CVP graph with “Unit Sold” as the horizontal axis and “D 2. Prepare CVP graphs for each of the following independent scenarios a. 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 c
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2,500 5,000 Total Cost 0 2,500 5,000 Operating income = ($10 X Units) - ($6 X Units) - $10,000 Units Sold Operating income = ($4 X Units) - $10,000 0 2500 Operating income = ($10 X Units) - ($6 X Units) - $10,000 Operating income = ($4 X Units) - $15,000 Operating income = ($10 X Units) - ($7 X Units) - $10,000
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