Tacos Locos is a taco concession business operating at five soccer parks. It sells large carnitas tacos for S6.00 each. Variable costs are $4.50 per taco, and fixed operating costs are $750,000 per year. 

Required 

a. Determine the annual break-even point in tacos. 

b. Prepare a cost-volume-profit graph for the company. Use a format that emphasizes the contribution LO3 margin. The vertical axis should vary between $0 and $5,000,000 in increments of $1,000,000. The horizontal axis should vary between 0 tacos and 1,000,000 tacos, in increments of 250,000 tacos. Label the graph in thousands. 

c. Prepare a profit-volume graph for the company. The vertical axis should vary between S(750.000) and $750,000 in increments of $150,000. The horizontal axis should vary as described in require- ment (b). Label the graph in thousands. 

d. Evaluate the profit-volume graph. In what ways is it superior and in what ways is it inferior to the traditional cost-volume-profit graph?