This preview shows page 1. Sign up to view the full content.
Unformatted text preview: then plot the total cost line. The break-even point is then determined from the intersection of the total cost line and total revenue line. The break-even dollar amount is found by drawing a line from the break-even point to the vertical axis with a horizontal line. The break-even point in units sold is found by drawing a line from the break-even point to the horizontal axis using a vertical line. In order to graph this information, one must know the unit selling price and multiply he price by the units sold. To see Lindas activity level, you must know the intended amount of sales, cost per unit, and the selling price of each unit. With this information then the graph can be constructed to show CVP analysis....
View Full Document
- Spring '10