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Construct a cost-volume-profit chart

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Reference no: EM132716507

Problem - Cost-volume-profit chart - 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.

Required -

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?

Reference no: EM132716507

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