Cost-Volume-Profit Graph: Identification and Sensitivity Analysis (LO3)

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

Required

a. Identify each of the following:
Pebme Ok 2. Line OR Seine 4. The difference between lines OF and OV 5. The difference between lines CC and OF 6. The difference between lines CC and OV 7. The difference between lines OR and OF 8. Point X 9. AreaCYO WS -
10. AreaRCY 2%

b. Indicate the effect of each of the following independent events on lines CC, OR, and the breakeven point:
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 JO " bem sn Po \
a On (p. 79)

Transcribed Image Text:

C T R C X V F