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Answers Profit-Volume Graph For the coming year, Cabinet Inc. anticipates fixed costs of $60,000, a unit variable cost of $70, and a unit selling price

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Profit-Volume Graph For the coming year, Cabinet Inc. anticipates fixed costs of $60,000, a unit variable cost of $70, and a unit selling price of $100. The maximum sales within the relevant range are $500,000. a. Determine the maximum possible operating loss. b. Compute the maximum possible operating income c. Construct a profit-volume graph on paper. Indicate whether each of the following levels of sales is in the operating profit area, operating loss area, or at the break-even point. 1,000 units 2,000 units 3,000 units 4,000 units 5,000 units d. Estimate the break-even sales (units) by using the profit-volume graph constructed in part (c). units

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