A typical cost-volume-profit graph is presented below.

Required

a. Identify each of the following:
Il, eras: (OVE Line OR Pine ee The difference between lines OF and OV at any given number of unit sales The difference between lines CC and OF at any given number of unit sales The difference between lines CC and OV at any given number of unit sales The difference between lines OR and OF at any given number of unit sales Point X Area CYO Area RC

b. Indicate the effect of each of the following independent events on lines CC, OR, and the break-even point:
1. A decrease in fixed costs An increase in unit selling price An increase in the variable costs per unit An increase in fixed costs and a decrease in the unit selling price A decrease in fixed costs and a decrease in the unit variable costs

Transcribed Image Text:

0 Total Revenue and Total Cost Units Sales R C