Refer to the data given in the preceding exercise for Dolphin Company. Required: 1. Prepare a cost-volume-profit

Question:

Refer to the data given in the preceding exercise for Dolphin Company.

Required:

1. Prepare a cost-volume-profit graph for the company.
2. Calculate Dolphin Company's break-even point in units, and show the break-even point on the CVP graph.
3. Explain why variable costing is more compatible with your CVP graph than absorption costing would be.

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