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Unformatted text preview: volume of production and total fixed costs. In constructing Cost-Volume-Profit (CVP) graph, (a) the breakeven point involves the plotting of three lines over the full range of activity: The total revenue line, the total fixed cost line, and the total cost line. The breakeven point is determined at the intersection of the total revenue and total cost lines. And (b) the breakeven point in units is obtained by drawing a vertical line from the breakeven point to the horizontal axis. The breakeven point in sales dollars is obtained by drawing a horizontal line from the breakeven point to the vertical axis....
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This note was uploaded on 01/24/2012 for the course ACC 220 ACC 220 taught by Professor Black during the Spring '11 term at University of Phoenix.
- Spring '11