Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. cost-volume-profit chart for the coming year, loud

Cost-Volume-Profit Chart For the coming year, Loudermilk Inc. anticipates fixed costs of $600,000, a unit...

80.2K

Verified Solution

Question

Accounting

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.

a. Construct a cost-volume-profit chart on a sheet of paper. Indicate whether each of the following levels of sales (units or dollars) is in the operating profit area, operating loss area, or at the break-even point.

4,800 units

12,000 units

$1,500,000

20,000 units

.

$2,500,000

b. Estimate the break-even sales (dollars) by using the cost-volume-profit chart constructed in part (a). $

600,000 or 720,000 or 1,500,000 or 50,000

c. The graphic format permits the user to visually determine the

fixed costs per unit or break-even point

and the

operating profit or loss or variable costs per unit

for any given level of

units or sales

.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students