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EX 20-17 Cost-volume-profit chart Obj. 4 For the coming year, Loudermilk Inc. anticipates fixed costs of $600,000, a unit variable cost of $75, and a

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EX 20-17 Cost-volume-profit chart Obj. 4 For the coming year, Loudermilk Inc. anticipates fixed costs of $600,000, a unit variable cost of $75, and a unit selling price of $125. The maximum sales within the relevant range are $2,500,000. a. Construct a cost-volume-profit chart. b. Estimate the break-even sales (dollars) by using the cost-volume-profit chart constructed in part (a). c. What is the main advantage of presenting the cost-volume-profit analysis in graphic form rather than equation form? EX 20-18 Profit-volume chart Obj. 4 Using the data for Loudermilk Inc. in Exercise 17, (a) determine the maximum possible operating loss, (b) compute the maximum possible operating profit, (c) construct a profit-volume chart, and (d) estimate the break-even sales (units) by using the profit-volume chart constructed in part (c)

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