1. How should mixed costs be classified in CVP analysis? What approach is used to effect the appropriate classification?
2. "Cost-volume-profit (CVP) analysis is based entirely on unit costs." Do you agree? Explain.
3. Linda Fearn asks your help in constructing a CVP graph. Explain to Linda (a) how the break-even point is plotted, and (b) how the level of activity and dollar sales at the break-even point are determined.
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