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Prepare a cost-volume-profit graph for the guitar shop

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Reference no: EM132590440

Question 1: Prepare a cost-volume-profit graph for the guitar shop. Label both axes in dollars with maximum values of $1,000,000. Draw a vertical line on the graph for the current ($750,000) sales level, and label total variable costs, total fxed costs, and total profits at $750,000 sales.

Question 2: What is the annual break-even dollar sales volume if management makes a decision that increases fixed costs by $35,000?

Reference no: EM132590440

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