(Appendix) Fit and Trim had the following income statement for 1997.

a. Prepare a CVP graph, in the traditional manner, to reflect the relations among costs, revenues, profit, and volume.

b. Prepare a CVP graph, in the contemporary manner, to reflect the relations among costs, revenues, profit, and volume.

c. Prepare a profit-volume graph.

d. Prepare a short explanation for company management about each of the graphs.LO1

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Sales (15,000 gallons @ $8) Variable Costs Production (20,000 gallons @ $3) Selling (20,000 gallons @ $.50) Contribution Margin Fixed Costs Production Selling and administrative General Income before Taxes Income Taxes (40%) Net Income $120,000 $60,000 10,000 (70,000) $ 50,000 $22,000 4,000 26,000 $ 24,000 (9,600) $ 14,400