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A CVP graph such as the one shown below is a useful technique for showing relationships among an organization's costs, volum and profits. Required: 1.
A CVP graph such as the one shown below is a useful technique for showing relationships among an organization's costs, volum and profits. Required: 1. Identify the numbered components in the CVP graph. 2. State the effect of each of the following actions on line 3, line 9, and the break-even point. a. The unit selling price is increased from $18 to $20. b. Unit variable expenses are decreased from $12 to $10. c. Fixed expenses are increased by $3,000 per period. d. Two thousand more units are sold during the period than were budgeted. e. Due to paying salespersons a commission rather than a flat salary, fixed expenses are reduced by $8,000 per period and unit variable expenses are increased by $3. f. Due to an increase in the cost of materials, both unit variable expenses and the selling price are increased by $2. g. Advertising costs are increased by $10,000 per period, resulting in a 10% increase in the number of units sold. h. Due to automating an operation previously done by workers, fixed expenses are increased by $12,000 per period and unit variable expenses are reduced by $4. Complete this question by entering your answers i Identify the numbered components in the CVP graph. Complete this question by entering your answers in the tabs below. State the effect of each of the following actions on line 3, line 9, and the break-even point. The unit from $18 to $20. Complete this question by entering your answers in the tabs below. State the effect of each of the following actions on line 3 , line 9, and the break-even point. Unit variable exp: decreased from $12 to $10. Complete this question by entering your answers in the tabs below. State the effect of each of the following actions on line 3 , line 9, and the break-even point. Fixed expenses are increased $3,000 per period. Complete this question by entering your answers in the tabs below. State the effect of each of the following actions on line 3 , line 9 , and the break-even point. Two thousand more during the period than were budgeted. Complete this question by entering your answers in the tabs below. State the effect of each of the following actions on line 3 , line 9 , and the break-even point. Due to commission rather than a flat salary, fixed expenses are reduced by $8,000 per period and unit va increased by $3. Complete this question by entering your answers in the tabs below. State the effect of each of the following actions on line 3 , line 9 , and the break-even point. Due to an increas materials, both unit variable expenses and the selling price are increased by $2. Complete this question by entering your answers in the tabs below. State the effect of each of the following actions on line 3, line 9, and the break-even point. Advertising costs are increased by $10,000 per period, resulting in a 10% increase in the number of units sold. Complete this question by entering your answers in the tabs below. State the effect of each of the following actions on line 3, line 9, and the break-even point. Due to automating an previously done by workers, fixed expenses are increased by $12,000 per period and unit variable expenses are re $4
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