In your own words, what has happened if a company's CVP graph shows the following change? Sales and Costs $500,000 $450,000 OLD RED LINE $400,000 $350,000 NEW RED LINE $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 Units of Sales In your own words, what has happened if a company's CVP graph shows the following change? Sales and Costs $500,000 NEW BLUE LINE $450,000 $400,000 OLD BLUE LINE $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 Units of Sales In your own words, what has happened if a company's PV graph shows the following change? Operating Profit (Loss) $100,000 OLD GREEN LINE NEW GREEN LINE $75,000 $50,000 $25,000 0 $(25,000) $(50,000) $(75,000) $(100,000) 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 Units of Sales The following graph illustrates a company's current CVP graph. The company currently produces and sells 8,000 units per year. What is their margin of error? Sales and Costs $500,000 Sales = 50x $450,000 Costs = 150,000 + 25x $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 Units of Sales