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9. For the coming year, Bepis Inc. anticipates fixed costs of $700,000, a unit variable cost of $85, and a unit selling price of $105.

9. For the coming year, Bepis Inc. anticipates fixed costs of $700,000, a unit variable cost of $85, and a unit selling price of $105. The maximum sales within the relevant range are $2,500,000.

  1. Construct a cost-volume-profit chart.
  2. Estimate the break-even sales (dollars) by using the cost-volume-profit chart constructed in part (A).
  3. What is the main advantage of presenting the cost-volume-profit analysis in graphic form rather than equation form?

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