Using the CVP graph in Exhibit 6-9, determine sales level (in units and dollars)

where Beachside would earn a profit of

a. $10,500

b. $27,000

The CVP graph is a useful management tool. Although it should not take the place of the calculations we have demonstrated thus far in this chapter, it has a distinct advantage over the calculations in that it allows managers to view the entire cost—volume-profit picture. Claudia June can, for example, assess Beachside’s profit potential at any level of business within the relevant range of activity.