Prepare a cost-volume-profit graph for the guitar shop. Label both axes in dollars with maximum values of $1.000,000. Draw a vertical line on the graph for the current ($800,000) sales level, and label total variable costs, total fixed costs, and total profits at $800,000 sales.

Fixed Variable Total $800,000 Sales. ... Costs Goods sold.. Labor.... Supplies Utilities Rent Advertising Miscellaneous. Total costs.... Net income.. $346,000 40,000 4,000 5,000 $180,000 10,000 9,000 48,000 10,000 10,000 $267,000 5,000 $400,000 (667,000) $133,000