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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, volume, and profits. P Reference

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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, volume, and profits. P Reference 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. 9. Advertising costs are increased by $10,000 per period, resulting in a 10% increase in the number of units sold

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