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Unformatted text preview: Next, plot the total fixed costs using a horizontal line. Plot the total fixed cost line at $200,000. Next, plot the total cost line. Plot this at the fixed cost line at zero activity. It increases by the variable cost at each level of activity. On the graph, the amount of the variable cost can be derived from the difference between the total cost and fixed cost lines at each level of activity. Determine the break-even point from the intersection of the total cost line and the total revenue line. The break-even point in dollars is found by drawing a horizontal line from the break-even point to the vertical axis. The break-even point in units is found by drawing a vertical line from the break-even point to the horizontal axis....
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- Spring '09