Prepare a CVP graph with Units Sold

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Reference no: EM132700271

Problem - Lotts Company produces and sells one product. The selling price is $10, and the unit variable cost is $6. Total fixed cost is $10,000.

Required -

Prepare a CVP graph with "Units Sold" as the horizontal axis and "Dollars" as the vertical axis. Label the break-even point on the horizontal axis.

Prepare CVP graphs for each of the following independent scenarios: (a) Fixed cost increases by $5,000, (b) Unit variable cost increases to $7, (c) Unit selling price increases to $12, and (d) Fixed cost increases by $5,000 and unit variable cost is $7.

Reference no: EM132700271

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