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Problem - Cost-volume-profit chart
For the coming year, Weill Inc. anticipates fixed costs of $240,000, a unit variable cost of $80, and a unit selling price of $120. The maximum sales within the relevant range are $1,200,000.
Required -
a. Construct a cost-volume-profit chart.
b. Estimate the break-even sales (dollars) by using the cost-volume-profit chart constructed in part (a).
c. What is the main advantage of presenting the cost-volume-profit analysis in graphic form rather than equation form?
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