Question
A typical cost-volume-profit graph is presented below. Required a. Identify each of the following: 1. Line OF 2. Line OR 3. Line CC 4. The
A typical cost-volume-profit graph is presented below. Required a. Identify each of the following: 1. Line OF 2. Line OR 3. Line CC 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. Area CYO 10. Area RCY b. Indicate the effect of each of the following independent events on lines CC, OR, and the break-even point: 1. A decrease in fixed costs 2. An increase in unit selling price 3. An increase in the variable costs per unit 4. An increase in fixed costs and a decrease in the unit selling price 5. A decrease in fixed costs and a decrease in the unit variable costs
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